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Originally Posted by FromSD
Eight of the top 10 counties for population growth are in Texas. Amazing. How does a state like Texas accommodate all that growth when its supposed attraction is based on its low taxes and cost of living? When California's population was booming in the '50s and '60s, the state government spent like crazy to build freeways, reservoirs, state parks and much of the state university system. It also raised taxes, so much so that the voter reaction to tax and spend resulted in the first Governor Brown going down to defeat to Ronald Reagan in 1966. So how does Texas do it? Presumably it helps that the developers of all the new housing going up in Texas foot the bill for sewers, streets and sidewalks, but how about all the other infrastructure that people in cities and suburbs expect? And what happens when all the developer-supplied infrastructure ages and needs to repaired or replaced? The same question could be asked about Florida, another no income tax state that is growing rapidly.
Is it just that people in states like Texas and Florida expect less from their state and local governments and so are content to accept poorer services for a lower tax bill? I do notice that a lot of the new expressways in those states are toll roads. So people pay a lower gas tax but may have to shell out for highway tolls. California, as in most of the west, never went the toll road path, with the exception of a few places in Orange County.
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A long time ago the talking heads decided they would rate competitiveness on a bunch of factors that show only part of the economic picture.
The main one is obviously income taxes. It's a narrative that gets played constantly. But there are plenty of hidden taxes in "low tax" states that get no play whatsoever.
1. Privatization of public services. This started in the 80s, but how many sprawl burgs in the sunbelt claim to have low taxes but then require you to contract privately with trash haulers to remove your trash, a service that is provided by right in other "higher tax" locals. These services are something like $1000 a year, typically.
2. Underfunded public schools. What proportion of low tax states have such low performing public schools that it is in effect, mandate that you send your kids to private schools? It's a hidden tax for many people. I'd argue in much of the south, this is by design. I mean, this is the very basis of Segregation Acadamies. Evangelical Whites pulled their kids from public schools en masse and have been strangling public schools of funds ever since.
3. Insurance (Homeowners and otherwise...I would lump car and health insurance in this bucket as well). Insurance rates across much of the coastal south are sky high and only getting higher. It's not just homeowners insurance that is skyrocketing in Florida. It's also car insurance. I haven't looked at it, but I presume there's no way health insurance could be competitive compared to other states in a place like Texas where over 30% of people are uninsured.
Add to that generally lower salaries (not uniformly, but generally...I know Texas and Georgia are exceptions) are you really better off?
The media says yes but I call bullshit.