RealClearMarkets – When Will Death Spiral States Impose Exit Taxes On Fleeing Citizens?

When Will Death Spiral States Impose Exit Taxes On Fleeing Citizens?

By Bill Frezza

One of the most fascinating characteristics of government borrowing—whether at the local, state, or federal level—is that debts contracted over time are obligations tied to specific geographical boundaries but not to the citizens living there when those debts were incurred. For example, while it’s customary to say that each of the 210,000 residents of Stockton, California, are on the hook for their share of the bankrupt municipality’s estimated $700 million in unpaid bills, the day one of them picks up and moves, personal responsibility for that debt drops to zero.

Imagine if that type of tax “evasion” were eliminated. How would it change America?

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Tags: Death Spiral States, Exit Taxes