Stimulus Rewards States That Have Abused Their Businesses the Most

By Rido @ Shutterstock.com

States that have abused their businesses with the harshest COVID-19 lockdown rules are going to reap the most from the COVID-19 stimulus package. The Wall Street Journal editorial board writes:

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States will also benefit from the federal enhanced $300 weekly unemployment benefits, which are taxable income in most states. The jobless benefit sweetener will especially help states with higher unemployment such as New Jersey (10.2%), Hawaii (10.1%), New York (8.4%), Connecticut (8.2%) and California (8.2%).

New Bureau of Economic Analysis data show how blue states that shut down more businesses have reaped larger federal payments. Transfer receipts grew significantly more for New Jersey (67.6%), California (54.6%), Illinois (51.7%), and New York (44.7%) than for Arizona (35.4%), Florida (26.5%), Wisconsin (22.5%) and South Dakota (20.9%) from the third quarter of 2019 to the third quarter of 2020.

At the same time, wages and salaries increased significantly more in states that allowed more businesses to reopen such as Arizona (4.7%), South Dakota (5.5%), Florida (1.7%) and Wisconsin (2.9%) than in states that maintained stricter lockdowns like New York (-1.6%), New Jersey (-1%), Illinois (0.2%) and California (2.3%).

It’s no wonder Americans are fleeing to states where their money and time are respected by the local government.

Every dollar in taxes your state or city takes away from you is one more dollar you can’t use to generate compounding over time. You don’t want to miss out on the miracle of compounding.

Action Line: For 2021, take a good hard look at the amount of taxes you paid to your state in 2020, and do a back of the napkin calculation of how much money could that become with compounding by your retirement. Then ask yourself, is it worth it to live here, or should you look for a better America?

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E.J. Smith - Your Survival Guy

E.J. Smith is Founder of YourSurvivalGuy.com, Managing Director at Richard C. Young & Co., Ltd., a Managing Editor of Richardcyoung.com, and Editor-in-Chief of Youngresearch.com. His focus at all times is on preparing clients and readers for “Times Like These.” E.J. graduated from Babson College in Wellesley, Massachusetts, with a B.S. in finance and investments. In 1995, E.J. began his investment career at Fidelity Investments in Boston before joining Richard C. Young & Co., Ltd. in 1998. E.J. has trained at Sig Sauer Academy in Epping, NH. His first drum set was a 5-piece Slingerland with Zildjians. He grew-up worshiping Neil Peart (RIP) of the band Rush, and loves the song Tom Sawyer—the name of his family’s boat, a Grady-White Canyon 306. He grew up in Mattapoisett, MA, an idyllic small town on the water near Cape Cod. He spends time in Newport, RI and Bartlett, NH—both as far away from Wall Street as one could mentally get. The Newport office is on a quiet, tree lined street not far from the harbor and the log cabin in Bartlett, NH, the “Live Free or Die” state, sits on the edge of the White Mountain National Forest. He enjoys spending time in Key West and Paris. Please get in touch with E.J. at ejsmith@yoursurvivalguy.com To sign up for my free monthly Survive & Thrive letter, click here.