Massachusetts Still Not Getting It

Hate to pick on the state that saw many great years with our own Larry Legend, but…

The Small Business & Entrepreneurship Council is taking Massachusetts to task for some questionable tax-related decisions as of late. Here’s the skinny:

According to a recent story in the Boston Herald, Governor Deval Patrick wants to do the following:

  • Extend the state’s 5 percent sales tax to alcohol sales in package stores. Bars and restaurants already pay the tax.
  • Extend the 5 percent sales tax to candy sales.
  • Extend the 5 percent sales tax to soda sales.
  • Impose $75 million in new motor vehicles taxes.
  • Increase the meal and hotel taxes by one percentage point.

What will these tax hikes actually accomplish? Consumers will face higher prices, and businesses will face higher costs and lost business. So, in the end, it will be bad news for an economy that’s already badly beaten and bruised.

For good measure, keep in mind that Massachusetts is not exactly sitting pretty in terms of its competitive position with other states.

Treat Your People Right: Many Californians Looking to Bail

It’s hard not to be jealous of California. Its residents don’t have to deal with black ice in January. There are palm trees. And it’s the place where "Hangin’ with Mr. Cooper" was filmed and enjoyed six magical seasons.

But an article on Yahoo! News today, and featured on the Drudge Report, illustrates what happens when people finally become tired of inadequate government:

Mike Reilly spent his lifetime chasing the California dream. This year he’s going to look for it in Colorado.

With a house purchase near Denver in the works, the 38-year-old engineering contractor plans to move his family 1,200 miles away from his home state’s lemon groves, sunshine and beaches. For him, years of rising taxes, dead-end schools, unchecked illegal immigration and clogged traffic have robbed the Golden State of its allure.

Is there something left of the California dream?

"If you are a Hollywood actor," Reilly says, "but not for us."

Since the days of the Gold Rush, California has represented the Promised Land, an image celebrated in the songs of the Beach Boys and embodied by Silicon Valley’s instant millionaires and the young men and women who achieve stardom in Hollywood.

But for many California families last year, tomorrow started somewhere else.

The number of people leaving California for another state outstripped the number moving in from another state during the year ending on July 1, 2008. California lost a net total of 144,000 people during that period — more than any other state, according to census estimates. That is about equal to the population of Syracuse, N.Y.

The state with the next-highest net loss through migration between states was New York, which lost just over 126,000 residents.