Because of legislative changes made in 2013, New Jersey’s surge in corporate tax subsidies has risen to unprecedented levels, further cramping New Jersey’s ability to invest in schools, transportation and other areas known to be greater drivers of job creation. This policy shift comes with an enormous financial reward to very few corporations and an enormous cost to Garden State taxpayers. But it doesn’t have to be this way. In fact, 10 key reforms – from forcing policymakers to actually pay for the tax breaks that happen on their watch to reducing the focus on retaining jobs that are already in New Jersey – could help rebalance the scales and ensure a more responsible approach to economic development in the Garden State.
One in five Georgia children lives with at least one immigrant parent and nearly half of immigrants in Georgia struggle to speak English. When parents struggle to speak English, it not only hurts their ability to bring home higher pay to support their families, it also limits their involvement in their children’s education. This reduces the likelihood their children will succeed in school and one day reach their potential in the workforce.
More than 509,000 Georgia children have immigrant parents and 45 percent of immigrants in Georgia don’t speak English well. Yet Georgia’s English language programs enrolled only about 12,000 adults in 2016. Georgia is also one of just two states that ban undocumented immigrants from basic literacy and other adult education programs. This ban hurts children, including U.S. citizens, by making English language education inaccessible for their parents.
It is in the best interest of the state for lawmakers to improve the educational opportunities for immigrants because Georgia is likely to continue to diversify and attract newcomers from many different countries. The country’s immigrant population is projected to increase at double the rate of the U.S.-born population over the next five years. Georgia’s workforce will likely add more immigrants as the state continues to capture a large share of the nation’s population growth. Putting up unusual roadblocks to literacy and training programs and underfunding English language education undermines Georgia’s future workforce and its ability to compete.
Home care aides provide vital care to thousands of Marylanders who have difficulty with daily tasks because of their age, a disability, or a health condition. These workers help their clients with a wide variety of critical daily tasks, such as bathing, dressing, and eating. This care enables many to remain in their homes rather than moving to a nursing home or other institution.
As Maryland’s population ages, home care is likely to become increasingly important for the health of older Marylanders and people with disabilities, as well as for our state economy. Because Medicaid pays for more than half of all home care services delivered nationwide, state policies have an important role in determining the kind and quality of home care services available.
Unfortunately, Maryland recently limited the ways aging adults and Marylanders with disabilities can obtain Medicaid-funded home care services by canceling its independent provider program. This program allowed people who receive home care services to exercise a significant degree of control over their own care, and canceling it is likely to harm both Medicaid participants and home care aides. Although the state initially projected that this program would become dramatically more costly as a result of changes in federal labor regulations, an analysis by the Maryland Center on Economic Policy shows that these costs would be relatively small. To ensure quality care for older Marylanders and Marylanders with disabilities, the state should reinstate the independent provider program.As Maryland’s population ages, home care is likely to become increasingly important for the health of older Marylanders and people with disabilities, as well as for our state economy. Because Medicaid pays for more than half of all home care services delivered nationwide, state policies have an important role in determining the kind and quality of home care services available.
Economists consistently find that a well-educated workforce and a high-quality transportation system are among the bedrock elements upon which a prosperous state economy is built. Providing everyone with access to the education and training they need to reach their full potential boosts the productivity of individual workers and strengthens the overall economy. A well-functioning transportation system likewise strengthens the economy, allowing goods and people to move quickly and reliably to the places they need to be. (For a more detailed discussion of the impacts of state investments in education and transportation, see MassBudget’s report on these issues.)
While the economic importance of high-quality transportation infrastructure and public education are widely recognized, some fear that raising taxes to fund such investments could lead to high-income taxpayers leaving the state—particularly if tax increases are focused heavily on these high-income households. Fortunately, because there is wide variation in tax rates among the 50 states, economists have ample data with which to study this question. The most thorough studies have found consistently that tax rates influence the residence decisions of only a very small share of such households. Instead, high-income people—like other people—overwhelmingly choose where to live based on work and business opportunities, family and social connections, and the draw of an agreeable climate. The vast majority do not make their residence decision based on state tax rates. In this policy brief we examine the evidence on the likely migration effects of raising income taxes on high-income households—those with taxable annual income above $1 million—and the impacts on net state revenue.