What to expect post-Measure A passage

 

Image by PickPik

 

If you thought Silicon Valley was unaffordable, unfriendly to business, and a loser place to start a career--you ain't seen nuthin'.

Thresholds matter.

The difference between medicine and poison can be but a microgram. Between art and vulgarity? A few misplaced brushstrokes. 

And between an acceptable level of government levies and a punitive tax regime--a mere half-percentage rate point. 

Area left-wing electeds like Matt Mahan and Susan Ellenberg (along with the local Democratic Socialists of America chapter) have pushed local city sales tax rates over 10% (and even higher rates are on the horizon) with the passage of Measure A. Many experts suggest that blowing past the 10% level represents a escalation into the Danger Zone of punitive taxation, which will have growth-killing results across the county--and for a long time. 

Economists suggest Silicon Valley residents should be prepared for the following consequences of our sky-high tax rates:

  • Businesses and residents from all income brackets will flee our high-tax environs, lowering the tax base.

  • Employment opportunities, especially entry level positions, will plummet, as small businesses with low margins go under. 

  • Local gov'ts will mismanage the new revenues (more empty light rail and bankrupt hospitals!)

    and return to voters requesting further tax extensions and higher rates.

Welcome to Mamdani on the Guadalupe.

--CJE for the Opp Now team

This Weekend's New Stories:

How higher tax rates and mismanaged local govt resources around homelessness and transit took the wind outta Austin's sails. Texas Policy connects the Guadalupe and the Colorado rivers.

All taxes constrain growth and wealth creation, but some hurt more than others. {Spoiler: it's the most progressive ones, says Jonathan Williams.}

What do people in high-tax cities and states do? They move. You know the reason why, but Kevin O'Leary daylights the data.

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christopher escher