Because economics. Some states have lower tax rates than others and — spoiler alert! — that changes people’s behavior.
I won’t drive out of my way to save $0.05 per gallon, but I will to save $0.45 per gallon. And that’s what I did this afternoon. It was worth over $5 total to drive a couple extra miles. No, wait, it was fun because I love to save money like that.
Our state’s tax rates have a huge impact on behavior around the border, and for good reason. It is simple economics (“the science that deals with the production, distribution, and consumption of goods and services, or the material welfare of humankind”).
But here’s the problem: Leftists literally fail at basic economics. That leads them to make all sorts of bad decisions, whether out of ignorance (e.g., low information voters, big-hearted people who don’t think critically, etc.) or out of malice (e.g., Obama, Clinton, etc.).
For example, they don’t realize that our high corporate tax rates send lots of jobs — and the taxes those employees would have paid — to other countries and divert valuable resources away from productive activities to exercises in finding loopholes. And worse yet, they encourage lobbyists who buy off politicians to create those loopholes.
Leftists think that high tax rates yield more money, but even President Kennedy knew that was wrong. Obama infamously noted that even if lower capital gains tax rates yielded higher revenues (and they most certainly do) that he would oppose them out of fairness. That’s Leftist logic, and it is terrible for this country.