But while the battle still rages and analysts study the entrails of Amazon’s decision-making, here’s a thought: What if both sides of the Dem battle are wrong? What if even crony capitalism is a big part of the reason for the epidemic of the blue-state blues?
The migration of jobs and families out of high-tax, high-cost states has been going on for years, but is becoming a stampede because of the new federal tax law and because of how Democrats are reacting to it.
The provision limiting state and local tax deductions at $10,000 wiped away a preferential treatment for high earners in those states, and helps explain why about 20 percent of filers will either get no benefit or see an actual hike in their federal tax bills. The resulting rush for the exits is putting pressure on government budgets in New York, New Jersey and elsewhere while creating a real-estate boom in Florida and other low-tax states.
Throw in the fact that some Democrat-controlled states, especially Illinois and New Jersey, already face huge problems with their civil- service pension funds and it’s obvious that the blue-state model is undergoing a major stress test.