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IBD goes on to say:
California and other states with steeply progressive income taxes simply do not grow as fast as their tax-free competitors. The nine states with no income tax had nonfarm payroll growth of 11.76% from 1999 to 2009. Payrolls in the nine states with the highest top tax rates (a group that includes California) rose an anemic 2.48%.
The difference in tax systems reflects a difference in attitudes toward business and the wealth that business generates. Capital gains are tax-free in Texas; in California, they are taxed up to 10.55%. To an entrepreneur choosing where to set up shop, the message is clear: Texas wants to reward success; California wants to tax it.So for those of you who think that Texas is a backward, redneck state, you might want to think again. In fact, when it comes to high-tech industries, Austin, Texas, ranks 7th, and Dallas/Fort Worth ranks 14th, according to BizJournals.
Californians are even choosing to move to Oklahoma, where the unemployment rate is 7 percent. During the last 10 years, more Californians moved to Oklahoma than the reverse. (California has an unemployment rate of 12.4 percent and Texas is 8.3 percent.)