Saturday, December 15, 2012

States Without An Income Tax Have Better Private Sector Economic Growth

Posted by Milton Recht:

From The Wall Street Journal, "States that Spend Less, Tax Less—and Grow More: States with an income tax spent 42% more per resident in 2011 than the nine states without an income tax." by Dave Trabert and Todd Davidson:
States that allow taxpayers and employers to keep more of their earnings are reaping the benefits. States without an income tax have significantly better growth in private sector GDP (59% versus 42%) over the last 10 years. They increased the number of jobs by 4.9% while jobs in the rest of the states declined by 2.6%. States without an income tax gained population (+5.5%) from domestic migration (U.S. residents moving in and out of states) while all other states as a whole lost 1.3% of population between 2000 and 2009.

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