Which States Will Lead America’s Future: Jonathan Williams on The Hugh Hewitt Show
Spending discipline and tax restraint separate thriving states from those driving employers away.
In his latest appearance on The Hugh Hewitt Show, ALEC President and Chief Economist Jonathan Williams shared updates from the states leading America’s future in reform, including Iowa’s fiscal reforms, Colorado’s debate over the Taxpayer’s Bill of Rights (TABOR), and the recent announcement of Bed Bath & Beyond’s departure from California due to high costs.
Williams pointed to Governor Kim Reynolds, an ALEC alumna, as an example of policy done right. “One of the things that stuck out to me… is Iowa has actually consolidated agencies down to about 50% reduction in total government agencies,” he noted. “It’s a great testament to the great work of Governor Reynolds and the legislators in Iowa.”
From there, Hewitt shifted to Colorado, raising concerns about efforts to weaken TABOR. Williams warned that the state is flirting with undermining its fiscal backbone. “TABOR, the Taxpayers Bill of Rights, has been in the Colorado State Constitution for more than 30 years now, and it really puts the brakes on overspending and over taxing,” he explained. “It’s been the one thing… that’s kept the state from becoming California east.” Yet, he added, some legislators are now seeking “to dismantle it because… it is their impediment to making Colorado a welfare state.”
Hewitt drew a parallel between Colorado’s TABOR and California’s Prop 13, noting that both have long restrained tax hikes. “It’s the one thing that Californians have is that they put prop 13 since 1978 and every attempt to repeal it has failed,” Hewitt said. “But they do nibble away at the margins out there, as California nibbles away about against the ability to do business completely.”
Williams argued that California already shows the economic costs of ignoring such protections. He cited Bed Bath & Beyond’s recent statement that the company would not have any stores in California. “They said what we’ve been saying… for now more than two decades at ALEC, which is California is nearly uninvestable for certain types of businesses,” he emphasized. High taxes, labor regulations, and operating costs were all cited. “Instead of addressing the root cause, Gavin Newsom had somewhat of a pathetic response where he tried to throw some shade at the business.”
Even so, Williams struck an optimistic note. “There’s hope for every state that can be turned around… but first have to you have to acknowledge to you have a problem,” he remarked. For now, he concluded, Iowa provides the model, while Colorado and California risk undermining their future.