On Saturday The Wall Street Journal had an editorial titled “Escape from Taxation.” The link is here.
In the editorial, it is mentioned that higher-income people are moving out of New Jersey as the tax rate is increased.
In my article “America’s Trojan Horse” found at this link, I discussed the widely-held fallacy that debt and deficits are almost inconsequential because governments can always increase taxation to service and repay debt.
What is happening in New Jersey is an important example of how this “increasing debt / increasing taxation” dynamic plays out in the “real world” – especially during times of prolonged economic stress and high indebtedness.
The implications are very far-reaching with regard to the resolve of heightened levels of indebtedness.
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SPX at 1083.50 as this post is written