The Two Tribes

This post is by Jeff Carter from Points and Figures

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Was talking to someone the other day that was part of a different tribe.  They heard about a billionaire moving out of state and couldn’t understand why that billionaire would make a charitable contribution to a local charity in their new locale and not to something on the west side of Chicago.

This is a tangible difference between the two tribes.  One sees it as a duty and responsibility to give money to the government for redistribution-or to participate in a public/private partnership the government controls for redistribution.  The other sees it as their money they earned and they are free to choose to do with it what they wish.

I was appealing my property taxes and a clerk briefly lectured me on how I drive on government roads…..

In Illinois, 99 cents of every dollar of any tax increase go to pay public pensions, not roads. Less than 50% of current taxes actually go for services.   We just had a historic fleecing of Illinois taxpayers. It was the most telegraphed tax increase of all time and if you didn’t see it coming you weren’t paying attention or you don’t care.  Other states are in similar straits as Illinois.  It will take ten to twenty years but there is a great sort going on right now as the tribes separate.  Politically, Illinois is doomed.  It’s been a one-party state for a long time and the weakness of the Republicans in this last legislative session showed.  Neither the House or Senate minorities stood up to anything.  The only thing that will tame the tax and spend recklessness is the municipal debt markets. Eventually, Illinois will get its comeuppance.

I noticed Texas governor Greg Abbott signed into law a piece of legislation banning red light cameras which tend to hurt poor people more than wealthy people. In Illinois, they are a profit center.  Texas is ruled by a different tribe than Illinois. If you follow him on Twitter the stream is about growth, and about doing stuff to make life easier on the poor. In their last legislative session they okay’ed oyster farms and made college credits transferrable. They are looking at providing more transparency on property taxes which is the one bane of Texas taxes.

Interestingly, people are moving to Texas. People are moving out of Illinois. A drip turned into a creek which turned into a river and now it’s going to flood.