Yes, we increase revenues by expanding the tax base, not just increasing taxes
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But, you increased the tax base because of a good climate for business. . .in spite of higher taxes in those states!
They are not booming, by any stretch of the imagination. They just have more people that make more money, because to live there it is (in many parts at least) far more expensive.
They may not be "booming" (That's the point. . .no state is "booming" this days!), but they certainly are not suffering as much as the "bible belt states!" And, as you pointed out. . .it is more expensive to live there, so the fact that the people make more money is just a moot point: If it you make $200,000 a year, and it costs you $36,000 to rent an apartment in New York, you are not better off than if you make $50,000 a year, and it costs you $9,000 a year to rent the same apartment! Once again, you are kind of contradicting your premise!
I believe I can show many examples of business leaving those type states due to their tax structures etc. Taking assistance from the Feds is not relevant to producing a favorable business climate.
You're correct, the red states are in trouble, and businesses are leaving those areas, because they prefer to move to "blue states" where business is more active, in spite of greater tax burden! It is not "how much you're taxed!" It's what those taxes provide you with (like good infrastructure!)"
That said, a state like Montana is going to have a lot of open areas and land to build roads on that a New Jersey won't have. So while New Jersey has more "rich" people according to the tax code and therefore collects more real dollars, they are not any better off because of it, nor does it account for the varying scenarios by state.
Montana is being bought by those rich people! By thousands of acres! My husband was born and grew up in Montana, he still has many friends there, who have never left the small town they grew up in. . . today, Montana is the perfect exemple of "very rich and very poor!" NO ONE there, neither the wealthy who bought those thousands of acres ranch to get away from civilisation, nor the native of Montana who are struggling to keep their "natural" life style are anxious to promote "NY like" infrastructure or businesses!
They are not automatically more expensive at all. There are parts of NJ that are very cheap. You need a ton more data to clearly state with authority that this claim is accurate.
Yes, you're right I need more data. . .and so do you!