Democrats are playing a “game of chicken” with their tax base that they’ll ultimately lose. And won’t recover from. The reason is that the economics that have kept businesses in uncompetitive jurisdictions will be an even bigger barrier to their return.

There are myriad examples of Democrats driving away their business tax base: Mayor Zohran Mamdani in New York, Mayor Katie Wilson in Seattle, California’s proposed billionaire tax, blue states rushing to pass higher income, wealth, and corporate taxes.

The trend is unmistakable. It is likely also uncorrectable.

The reason is relocation costs: those all-in costs required to uproot complex business operations.  Just because there is a lower cost of operation in one location; this does not mean businesses will relocate there.

Relocation is expensive, finding suitable replacement venues isn’t easy, moving personnel is difficult (with perhaps many unwilling to go), locating, hiring, and training new personnel takes time and money. These added real-world costs add significantly to businesses’ calculation to relocating.

Democratic jurisdictions have benefited from........

© Townhall