Dynamist Blog

Why (Legal or Illegal) Immigrants Are Better for Texas than California

It's the political economy, stupid. (Nasty phrase, that.) Texas has no income tax, which means public services are funded by sales and property taxes. Everyone, regardless of income or legal status, pays sales and property taxes, either directly or indirectly through rent. California, by contrast, relies heavily on a very progressive income tax that doesn't fall on people who are paid off the books or who don't earn much money in the first place. Liberals who support immigration should rethink their love of progressive income taxes.

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