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As people vote with their feet, California to lose a representative - OCRegister

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Every ten years the Census Bureau counts the residents of the United States and determines the number of representatives in Congress that each state will have, based on its population. The total number of representatives will continue to be same, so states that gain population relative to the others gain additional representatives at the expense of states that have lost population.

This year for the first time in California’s history, the state has lost a representative. It is hard evidence of the lack of growth, even the exodus, of the state population. This cannot be dismissed as political spin or a talking point. The Golden State is flaking off.

In all, seven states lost a representative in the reapportionment, while five states gained one and Texas gained two.

Where did everybody go, and more importantly, why?

Along with California, the states that lost population relative to the others are New York, Illinois, Michigan, Ohio, Pennsylvania and West Virginia. The states that gained, along with Texas, are Florida, Colorado, North Carolina, Montana and Oregon.

From the perspective of residents, the success or failure of a state government’s policies may be indicated by factors such as tax rates, unemployment and housing starts.

The top marginal income tax rate in California is 13.3%, the highest in the nation. In New York, it’s 8.82%; in Illinois, 4.95% (flat rate), in Michigan, 4.25% (flat rate), in Ohio, 4.797%; in Pennsylvania, 3.07% (flat rate); and in West Virginia, 6.5%.

Among the states that gained population, Texas and Florida have no income tax. Colorado’s state income tax rate is a flat 4.55%; North Carolina has a flat rate of 5.25%; Montana’s top rate is 6.9% and Oregon’s is 9.9%.

California’s top tax rate applies to incomes above $1 million, but the state isn’t shy about grabbing money from people who are barely surviving. Taxable incomes above zero and up to $8,932 are taxed at 1%, then 2% up to $21,175, 4% up to $33,421, 6% up to $46,394, and it just gets worse from there. Relative to California, the tax rate of zero in Texas and Florida is highly attractive.

Texas and Florida are also building more new housing than California. In November 2020, for example, Texas issued nearly 20,000 building permits for new housing, while Florida issued about 11,000. California, despite a significantly larger population, issued just 9,000 building permits for new housing. Scarcity drives price increases, which helps to explain why the median home values in Florida and Texas are about $215,000 and $173,000 respectively, while in California the median home value is now above $500,000, according to data from Zillow.

Of the 50 states and the District of Columbia, California’s unemployment rate in March was ranked 47th at 8.3% tied with Connecticut and New Mexico, and New York was even worse at 8.5%, according to the U.S. Bureau of Labor Statistics. Florida, at 4.7%, ranked 19th.

While no single factor explains why people leave one state for another, California ranks badly in category after category, including the Census Bureau’s ranking of the highest poverty rate in the nation when the cost of living is taken into account. State residents are paying the highest taxes and the highest prices, and struggling with high unemployment. It’s long past time for state lawmakers to recognize that California is competing with other states for businesses and residents, and it’s losing.

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April 29, 2021 at 02:23PM
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As people vote with their feet, California to lose a representative - OCRegister
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