A couple of months ago, California’s Public Utilities Commission (CPUC) proposed putting a tax on text messages sent in the State. Their argument was that text messages should be taxed as it should be a considered a telecommunications service, which the CPUC has jurisdiction over. Although pushback from companies in the telecommunications industries complaints has caused the CPUC to abandon this quest, this push is a result of an alarming matter that affects many States in the USA.
It has been reported that the USA, in general, has been experiencing a decline in population growth. According to census reports, last year showed an estimated 80-year low attributed to declining birth rates. We see that some states are thriving in economic growth while others are experiencing a snail-paced growth as well as a significant dip in population.
According to reports Arizona, Idaho, Utah, Nevada, Texas, Colorado, Washington, and Florida are the top eight fastest growing States in America according to population growth. With this growth comes, of course, a rise in not only swift employment but an increased Gross Domestic Product (GDP) rate as well.
The rise in the population growth of these eight states has been attributed to the low taxes and friendly natures of their policies to the start-up of businesses and the availability of jobs.
On the other hand, states such as California seem to be declining not only in population growth but the retention of residents. It seems that the golden state’s flourishing tech industry and generally lovely weather has not been enough to keep people there. Reports show that about 710,000 residents have moved to other States from California due to high living expenses and housing costs among other things.
Low- to middle-income families are not the only ones who have been fleeing the state’s skyrocketing taxes and strict regulations. According to a study by Business Relocation Coach Joseph Vranich:
“During the study period (starting in 2016), $76.7 billion in capital funds were diverted out of California along with 275,000 jobs – and companies acquired at least 133 million square feet elsewhere – all of which are understated because such information often went unreported in source materials.”
California has had one saving grace; foreign immigration numbers have been a big factor in keeping population numbers up, however other states on the same boat are not so lucky.
States such as West Virginia, Illinois, Connecticut, Alaska, New York, Louisiana, Mississippi, Wyoming, and Hawaii, have been experiencing the decline in population and are suffering from the subsequent implications of that as well.
This is why various branches in government in states such as California have been looking for other sources to increase taxes on various services such as text messages. This exodus of residents is causing growing concern as the exit of their residents will most likely increase, therefore causing more raised taxes which will no doubt result in more residents leaving and the cycle continues.
What will these states’ local governments do in order to prevent this exodus? Will we now see a push to change federal laws for America as a whole? We will have to watch and see…