Written by Gordon Webster, Jr.
A tax research organization has released a new analysis that shows just how far a hard-earned buck — in this case, $100 — goes in the Golden State.
Using U.S. Bureau of Economic Analysis data on price parities between states, The Tax Foundation — the nation’s leading independent tax policy nonprofit — determined that $100 actually buys you $87.41 worth of goods in California.
That ranks California as the No. 3 top most expensive state in the nation. Only Hawaii ($84.46) and New York ($86.51) are more expensive.
Mississippi is the state with the most buying power, where $100 has a relative value of $115.74, followed by Alabama at $115.47 and Arkansas at $115.07.
Texas — a favored location for California’s economic refugees — has a worth of $103.20. Another favored locale, Idaho, has a worth of $107.53.
Of course, this is bad news all around for California residents, especially for the most economically vulnerable of our nearly 40 million residents.
But also consider what it means for business owners. A hundred bucks in California is worth $20.12 more in Idaho and $15.79 more in Texas. If you add the cost of regulatory compliance and minimum wage, there really aren’t a whole lot of compelling reasons to maintain a business in this state.
That’s something Golden State business owners must chew on every day, with little to no hope for relief.