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Bannon's War on the Establishment


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MUST READ: Liberal California Fails At Fighting Poverty, Conservative Texas Succeeds

Three big factors are responsible for California having more poor people and Texas having fewer as a portion of their state populations:

  • California has high state and local tax rates, while the rates in Texas are low.
  • California has a generous welfare system that acts as a disincentive to work, while Texas incentivizes people to get jobs.
     
  • And California’s many burdensome regulations raise the cost of living and act as roadblocks to development, while inflating housing costs. So a family needs to have a higher income to get out of poverty in California than it needs in Texas.

California has the nation’s highest marginal state income tax rate – 13.3 percent. Texas is one of seven states without a state income tax. A ranking of all state and local taxes for median income households in every state shows that California ranks No. 8, while Texas comes in at No. 30 on the list . . . 

 . . .Some 1 out of 3 Americans who receive federally qualified welfare payments –Temporary Assistance for Needy Families – are Californians. And California has expanded Medicaid (called Medi-Cal there), to cover 13.5 million people. About one-third of state residents are enrolled in the health insurance program for the poor funded by the federal government and the state.


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