Government Regulation

June 17, 2020

Tax Migration

Progressive Tax States Lose People, Income To Flat And Zero Income Tax States

Submitted by Ted Dabrowski and John Klingner via Wirepoints.org,

Flat and no-income tax states, as a group, are beating out progressive tax states in the contest for people and their incomes, according to the last decade of IRS migration data analyzed by Wirepoints.

The nation’s seventeen flat and no income tax states won a net 1.9 million residents and $120 billion in Adjusted Gross Income (AGI) from progressive tax states during the 2000-2018 period. That’s nearly a 4 percent AGI gain for the flat and no income tax states, based on their 2010 base of $3.3 trillion in AGI. A table with the individual winners and losers over the time period is provided below.

The net gains in AGI not only bolster the tax base the year in which they come in, but they also help all subsequent years. The gains pile up on top of each other, year after year.

That means the country’s flat and zero income tax states, as a group, have accumulated $490 billion in AGI since 2010 from the nation’s progressive tax states, adding vibrancy, investment and tax revenues to the winning states.

States don’t change their income tax schemes often, so when they do, it’s a big deal. The change pits those who favor progressive taxes against those who want a flat tax or no income tax at all. Eight states don’t tax income at all in the U.S., while ten states have flat income taxes. Thirty-two states have some form of a progressive tax scheme.

Connecticut was the last state to move to a progressive tax structure in 1996, while North Carolina (2013) and Kentucky (2018) changed to a flat tax more recently.

Now some Illinois politicians want to abandon the state’s flat tax in favor of a progressive income tax. They argue, among other things, that higher taxes will bring more stability and people to the state.

But the movement of people and wealth across the country tells a different story.

The accumulated pattern over the past nine years is pretty clear. People are moving from progressive tax states to flat and zero income tax states. Of course, people move for a whole host of other reasons beside taxes: jobs, housing, family, weather, retirement, corruption, etc. Taxes are only one reason. But for many people, they are a big one.

The wealth accumulation by the flat and zero-income tax states is all the more impressive considering there were just 17 such states (not including Kentucky) compared to 33 progressive tax states.

Total gains

The $120 billion total is the net transfer between the two groups of states. In terms of individual total wealth gained from migration, zero and flat income tax states make up seven of the top ten winners of net domestic migration.

Florida, a state with no income tax, has been the biggest winner by far. The Sunshine State has gained nearly a million net people and over $95 billion in AGI from other states since 2010.

Zero-tax Texas is up next with a gain of $31 billion in AGI, followed by North Carolina with $16 billion. Two progressive tax states, Arizona and South Carolina are next, then non-progressive Washington, Colorado, Nevada and Tennessee. Progressive tax Oregon rounds out the top 10.

In contrast, the list of top losers is filled with progressive tax states. New York is the worst in the country; it has lost a net $55 billion in AGI to other states since 2010. Illinois, where politicians want to join the ranks of progressive-tax states, is next with a net loss of over $34 billion. Progressive tax California, New Jersey, Connecticut and Ohio are next. Flat tax states Massachusetts and Pennsylvania along with progressive Maryland and Virginia round out the top ten losers.

The gains and losses states have experienced since 2010 aren’t trivial. Winning states have, on average, seen net AGI gains from other states equal to 10 percent of their 2010 base AGI. Once again, Florida takes the top spot with an in-migration gain equivalent to 20 percent of its 2010 AGI. Progressive tax South Carolina is next with a gain of 16.1 percent, followed by Texas with 15.7 percent.

Illinois, meanwhile, lost the equivalent of 10 percent of its 2010 AGI to other states, the 2nd-worst loss in the nation behind Alaska.

What all this shows is that progressive tax states, if they’re attractive in other ways, can still win people and their incomes. And it shows that a flat tax state like Illinois can lose people if it’s corrupt, mismanaged and financially crippled.

So no, taxes aren’t everything. But add a progressive tax scheme to the nation’s most mismanaged, most-indebted, near-junk-rated and highest taxing state in the country and you’re asking for trouble.

Just follow the money.

https://www.zerohedge.com/markets/progressive-tax-states-lose-people-income-flat-and-zero-income-tax-states

June 3, 2020

Additions to FDA Food Contact Inventory

US FDA adds 18 substances to food contact inventory

US Food and Drug Administration (FDA) adds 18 new entries to Inventory of Effective Food Contact Substance (FCS) Notifications since January 2020

June 3, 2020   Justin Boucher

In an article published on June 2, 2020, law firm Keller and Heckman LLP (KH) informed that the US Food and Drug Administration (FDA) has added 18 additional entries to its Inventory of Effective Food Contact Substances (FCS) Notifications since January 2020. Food contact substances within the inventory are those that “have been demonstrated to be safe for their intended use.” The new substances are included in the following entry numbers:

  • 2045: 2-Propenoic acid, 2-methyl-, polymer with butyl 2-propenoate, cyclohexyl 2-methyl-2-propenoate, methyl 2-methyl-2-propenoate, 2-oxiranylmethyl 2-methyl-2-propenoate, 1,2-propanediol mono(2-methyl-2-propenoate) and 2-propen-1-yl 2-methyl-2-propenoate (CAS 1874228-60-0).
  • 2043: Cellulose acetate (CAS 9004-35-7), and optionally modified with propionate to form cellulose acetate propanoate (CAS 9004-39-1) resulting in up to 49 weight-percent propionate esters.
  • 2038: Benzenesulfonic acid, 2-[2-(2,4-diamino-1,6-dihydro-6-oxo-5-pyrimidinyl)diazenyl]-5-methyl- (CAS 1021701-36-9).
  • 2037: Oleic acid, mono ester with oxybis(propanediol) (also known as diglyceryl monooleate) (CAS 49553-76-6).
  • 2036: An aqueous mixture of peroxyacetic acid (PAA) (CAS 79-21-0), hydrogen peroxide (HP) (CAS 7722-84-1), acetic acid (AA) (CAS 64-19-7), 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP) (CAS 2809-21-4), dipicolinic acid (DPA) (CAS 499-83-2), and optionally sulfuric acid (CAS 7664-93-9). REPLACES FCN 1639
  • 2034: Copolymers of styrene (CAS 100-42-5), α-methylstyrene (CAS 98-83-9), butyl methacrylate (CAS 97-88-1), 2-ethylhexyl acrylate (CAS 103-11-7), methyl methacrylate (CAS 80-62-6), butyl acrylate (CAS 141-32-2), itaconic acid (CAS 97-65-4), methacrylic acid (CAS 79-41-4), hydroxypropyl acrylate (CAS 999-61-1 and CAS 2918-23-2), sodium methallyl sulfonate (CAS 1561-92-8), and sodium styrene sulfonate (CAS 2695-37-6).
  • 2033: An aqueous mixture of peroxyacetic acid (PAA) (CAS 79-21-0), hydrogen peroxide (HP) (CAS 7722-84-1), acetic acid (AA) (CAS 64-19-7), 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP) (CAS 2809-21-4), and optionally dipicolinic acid (DPA) (CAS 499-83-2) and/or sodium hydroxide (NaOH) (CAS 1310-73-2). REPLACES FCN 1426
  • 2031: Zinc pyrithione (CAS 13463-41-7).
  • 2028: Polyurethane resins (CAS 89097-02-9) derived from the reaction of diphenylmethane diisocyanate with 1,3-propanediol and polytetramethylene ether glycol.
  • 2026: Blocked isophorone diisocyanate (IPDI) polymer consisting of trimer, pentamer, heptamer, and nonamer oligomers, with the primary component of interest being the trimer (CAS 103170-26-9). REPLACES FCN 1039
  • 2025: Cellulose, triacetate (CAS 9012-09-3).
  • 2024: Acetic acid ethenyl ester, polymer with ethene and ethenol (CAS 26221-27-2).
  • 2023: A mixture of 35-60 percent hydroxysulfinoacetic acid, disodium salt (CAS 223106-41-0), 10-60 percent hydroxysulfoacetic acid, disodium salt (CAS 29736-24-1), and 0-40 percent sodium sulfite (CAS 7757-83-7).
  • 2022 and 2021: Microfibrillated cellulose pulp (CAS 65996-61-4).
  • 2020: Mixed esters of C5-C12 fatty acids with pentaerythritol, dipentaerythritol, and polypentaerythritol.
  • 2019: Platinum 5,10,15,20-tetrakis(pentafluorophenyl)porphyrin (CAS 109781-47-7).
  • 2017: bis(hydrogenated palm-oil alkyl)hydroxy amines (CAS 1374859-51-4).

US FDA adds 18 substances to food contact inventory

June 3, 2020

Additions to FDA Food Contact Inventory

US FDA adds 18 substances to food contact inventory

US Food and Drug Administration (FDA) adds 18 new entries to Inventory of Effective Food Contact Substance (FCS) Notifications since January 2020

June 3, 2020   Justin Boucher

In an article published on June 2, 2020, law firm Keller and Heckman LLP (KH) informed that the US Food and Drug Administration (FDA) has added 18 additional entries to its Inventory of Effective Food Contact Substances (FCS) Notifications since January 2020. Food contact substances within the inventory are those that “have been demonstrated to be safe for their intended use.” The new substances are included in the following entry numbers:

  • 2045: 2-Propenoic acid, 2-methyl-, polymer with butyl 2-propenoate, cyclohexyl 2-methyl-2-propenoate, methyl 2-methyl-2-propenoate, 2-oxiranylmethyl 2-methyl-2-propenoate, 1,2-propanediol mono(2-methyl-2-propenoate) and 2-propen-1-yl 2-methyl-2-propenoate (CAS 1874228-60-0).
  • 2043: Cellulose acetate (CAS 9004-35-7), and optionally modified with propionate to form cellulose acetate propanoate (CAS 9004-39-1) resulting in up to 49 weight-percent propionate esters.
  • 2038: Benzenesulfonic acid, 2-[2-(2,4-diamino-1,6-dihydro-6-oxo-5-pyrimidinyl)diazenyl]-5-methyl- (CAS 1021701-36-9).
  • 2037: Oleic acid, mono ester with oxybis(propanediol) (also known as diglyceryl monooleate) (CAS 49553-76-6).
  • 2036: An aqueous mixture of peroxyacetic acid (PAA) (CAS 79-21-0), hydrogen peroxide (HP) (CAS 7722-84-1), acetic acid (AA) (CAS 64-19-7), 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP) (CAS 2809-21-4), dipicolinic acid (DPA) (CAS 499-83-2), and optionally sulfuric acid (CAS 7664-93-9). REPLACES FCN 1639
  • 2034: Copolymers of styrene (CAS 100-42-5), α-methylstyrene (CAS 98-83-9), butyl methacrylate (CAS 97-88-1), 2-ethylhexyl acrylate (CAS 103-11-7), methyl methacrylate (CAS 80-62-6), butyl acrylate (CAS 141-32-2), itaconic acid (CAS 97-65-4), methacrylic acid (CAS 79-41-4), hydroxypropyl acrylate (CAS 999-61-1 and CAS 2918-23-2), sodium methallyl sulfonate (CAS 1561-92-8), and sodium styrene sulfonate (CAS 2695-37-6).
  • 2033: An aqueous mixture of peroxyacetic acid (PAA) (CAS 79-21-0), hydrogen peroxide (HP) (CAS 7722-84-1), acetic acid (AA) (CAS 64-19-7), 1-hydroxyethylidene-1,1-diphosphonic acid (HEDP) (CAS 2809-21-4), and optionally dipicolinic acid (DPA) (CAS 499-83-2) and/or sodium hydroxide (NaOH) (CAS 1310-73-2). REPLACES FCN 1426
  • 2031: Zinc pyrithione (CAS 13463-41-7).
  • 2028: Polyurethane resins (CAS 89097-02-9) derived from the reaction of diphenylmethane diisocyanate with 1,3-propanediol and polytetramethylene ether glycol.
  • 2026: Blocked isophorone diisocyanate (IPDI) polymer consisting of trimer, pentamer, heptamer, and nonamer oligomers, with the primary component of interest being the trimer (CAS 103170-26-9). REPLACES FCN 1039
  • 2025: Cellulose, triacetate (CAS 9012-09-3).
  • 2024: Acetic acid ethenyl ester, polymer with ethene and ethenol (CAS 26221-27-2).
  • 2023: A mixture of 35-60 percent hydroxysulfinoacetic acid, disodium salt (CAS 223106-41-0), 10-60 percent hydroxysulfoacetic acid, disodium salt (CAS 29736-24-1), and 0-40 percent sodium sulfite (CAS 7757-83-7).
  • 2022 and 2021: Microfibrillated cellulose pulp (CAS 65996-61-4).
  • 2020: Mixed esters of C5-C12 fatty acids with pentaerythritol, dipentaerythritol, and polypentaerythritol.
  • 2019: Platinum 5,10,15,20-tetrakis(pentafluorophenyl)porphyrin (CAS 109781-47-7).
  • 2017: bis(hydrogenated palm-oil alkyl)hydroxy amines (CAS 1374859-51-4).

US FDA adds 18 substances to food contact inventory

May 21, 2020

Tempur Sealy Reopening Stores

Tempur Sealy Opening U.S. Retail Locations and Announces Clean Shop Promise™ Protocol

|PR Newswire|About: TPX

LEXINGTON, Ky., May 21, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) announced today that customers and associates are welcomed back into the Company’s U.S. Tempur-Pedic and Sleep Outfitters retail stores. After temporary closures, the Company has begun opening its domestic retail stores in a phased approach in compliance with recommended safety precautions from the CDC, state and local health authorities and its Clean Shop Promise™ protocol. Tempur Sealy expects the vast majority of its approximately 160 U.S. retail locations to be open by the end of May. Some may operate with reduced hours and/or modified delivery services.

In addition to opening its Company-owned stores, the Company continues to support third-party retailers in the opening of their stores through offering its Clean Shop Promise™ protocol as a resource. The Company built upon its unique combination of robust consumer insights and global industry experience to develop a holistic set of guidelines designed to offer consumers a clean and comfortable in-store experience.

Tempur Sealy Chairman and CEO Scott Thompson commented, “One of our strengths is our powerful omni-channel distribution model, which allows us to reach consumers wherever they want to shop. We believe about 65% of the third-party retail doors will be open in the U.S. by the end of May, which is up from 40% at the end of April.”

Thompson continued, “We see consumers shopping both online and in-stores. While it is early, stores that have re-opened are generally experiencing strong closing rates with reduced traffic. As more third-party retail locations open and we leverage our Clean Shop Promise™ protocol, we expect that traffic will continue to increase as consumers seek to experience our products first-hand.”

https://seekingalpha.com/pr/17878316-tempur-sealy-opening-u-s-retail-locations-and-announces-clean-shop-promise-protocol

May 21, 2020

Tempur Sealy Reopening Stores

Tempur Sealy Opening U.S. Retail Locations and Announces Clean Shop Promise™ Protocol

|PR Newswire|About: TPX

LEXINGTON, Ky., May 21, 2020 /PRNewswire/ — Tempur Sealy International, Inc. (TPX) announced today that customers and associates are welcomed back into the Company’s U.S. Tempur-Pedic and Sleep Outfitters retail stores. After temporary closures, the Company has begun opening its domestic retail stores in a phased approach in compliance with recommended safety precautions from the CDC, state and local health authorities and its Clean Shop Promise™ protocol. Tempur Sealy expects the vast majority of its approximately 160 U.S. retail locations to be open by the end of May. Some may operate with reduced hours and/or modified delivery services.

In addition to opening its Company-owned stores, the Company continues to support third-party retailers in the opening of their stores through offering its Clean Shop Promise™ protocol as a resource. The Company built upon its unique combination of robust consumer insights and global industry experience to develop a holistic set of guidelines designed to offer consumers a clean and comfortable in-store experience.

Tempur Sealy Chairman and CEO Scott Thompson commented, “One of our strengths is our powerful omni-channel distribution model, which allows us to reach consumers wherever they want to shop. We believe about 65% of the third-party retail doors will be open in the U.S. by the end of May, which is up from 40% at the end of April.”

Thompson continued, “We see consumers shopping both online and in-stores. While it is early, stores that have re-opened are generally experiencing strong closing rates with reduced traffic. As more third-party retail locations open and we leverage our Clean Shop Promise™ protocol, we expect that traffic will continue to increase as consumers seek to experience our products first-hand.”

https://seekingalpha.com/pr/17878316-tempur-sealy-opening-u-s-retail-locations-and-announces-clean-shop-promise-protocol