50 State Tax Lesson for the President
Insightful article from Art Laffer, a member of Ronald Reagan's Economic Policy Advisory Board on the effects of higher taxes on growth.
The article is summed up in these 2 excerpts that follow and a link to a copy of the full article is included. I only wish my state legislators (illinois) new about this before the raised my income taxes 67% - and now are discussing a further increase.
"Every year for the past 40, the states without income taxes had faster output growth (measured on a decadal basis) than the states with the highest income taxes. In 1980, for example, there were 10 zero-income-tax states. Over the decade leading up to 1980, those states grew 32.3 percentage points faster than the 10 states with the highest tax rates. Job growth was also much higher in the zero-tax states. The states with the nine highest income tax rates had no net job growth at all, and seven of those nine managed to lose jobs."
"Over the past decade, states without an income tax have seen 58% higher population growth than the national average, and more than double the growth of states with the highest income tax rates. Such interstate migration left Texas with four new congressional seats this year and spanked New York and Ohio with a loss of two seats each."
The complete article can be found here: