Vice President Kamala Harris, a California native, has put forth an economic plan that mirrors the policies of her home state. However, the effects of California-style governance, such as high taxes and heavy regulation, have led to an exodus of residents and businesses from the state.
Between 2010 and 2019, 1.25 million people left California for other states, with a net 749,529 people departing in 2021 and 2022 alone. Major corporations like Tesla and Hewlett-Packard have also moved their headquarters out of California due to the state’s high tax burden and cost of living.
California’s heavy tax burden includes high personal and corporate income taxes, sales taxes, and gas taxes. However, the state’s government is known for wasting money on projects like the dysfunctional high-speed rail and nonprofits that exploit cities with minimal oversight.
In contrast, states like Florida and Texas have attracted residents with pro-growth policies of low taxes and regulation, making it easier to start and grow businesses. The Harris economic plan, outlined in an 82-page document released in September, proposes tax credits for selected industries but broad tax increases on all businesses.
The plan also includes a national minimum wage increase, similar to California’s $20 an hour mandate for fast-food workers. Additionally, subsidy proposals for home purchases and student loan forgiveness could worsen inflation and increase national debt.
The Biden-Harris administration’s track record of fueling inflation through deficit spending and regulations has raised concerns about the economic impact of Harris’ plan. Higher prices, excessive regulations, and central control of the economy are seen as the main causes of California’s economic struggles.
While people unhappy with California’s policies can move to other states, the nationwide implementation of California-style governance could leave Americans with nowhere to escape. As Vice President Harris pushes for her economic plan, the potential consequences for the nation’s economy remain a topic of concern.
