Left's Howls Against Rick Perry's Texas Prove Its Low-Tax Model Is A Success

February 19, 2013
Investors.com
IBD Editorial

Taxation: Governor Rick Perry took a lot of ridicule for his efforts to lure California's tax-strangled businesses to his home state of Texas. If that's so ridiculous, how come it's his leftist critics showing all the hysteria?

Perry's state is an undisputed economic success story and has been a magnet for businesses from all over the U.S. for several years now.

With no income tax, a legislature that balances its budget and a bureaucracy that seems conditioned to ask businesses "How can I help you?", Texas' biggest problem these days is finding enough office space to accommodate all the newcomers.

For that reason, it was grimly fascinating to see Perry visit California — which has just got done hiking taxes from 10.3% to 13.3% on top earners — attracting interest from more than 200 firms, which seem to be raring for what a Forbes columnist called a "reverse gold rush."

"Gov. Brown may call it poaching," said Perry, responding to Brown's sour comparison of the visit to flatulence. "I just call it giving people an option of where they can locate their business and be able to keep more of their money." That's called reality.

Fact is, California is punishing businesses and individuals with higher state taxes, while Texas is getting inundated with California companies seeking to move to the Lone Star State, regardless of whether Perry visits.

And that seems to be behind a growing no-holds-barred effort by the media hive and its left-wing allies to claim that Perry's visit somehow was the failure.

Their arguments range from strange arguments that taxes don't matter, the business climate doesn't matter and balanced budgets don't matter and because not every business is moving, the movement toward Texas is somehow irrelevant.

"Perry ending California trip empty-handed — so far," wrote the Associated Press, apparently assuming Perry was some sort of Pied Piper who had to bring back actual people on that trip or it was of no consequence.

The Democratic Party-linked pressure group called the Lone Star Project, whose principals are all linked to nongovernment groups funded by leftist billionaire George Soros, went further. "Well, looks like Rick Perry got out again," a radio ad by the group went. "Governor Oops is running around selling snake oil, talking about big tax breaks if you move your business to Texas."

The major media, meanwhile, cited various "studies" stating that because most businesses don't move, the movement at the margins somehow doesn't matter — specious logic by economic standards since the essence of economics is to watch activity at the margins. The New York Times and Washington Post each ran a piece in this vein, as if on cue from JournoList.

But tax actions have consequences. The left's hysteria in trying to debunk basic economic truths is just proof that Perry's trip was the right thing to do.

Raconteur Media Company in Austin, TX designed, develops and maintains RickPerry.org for Texans for Rick Perry.