Wait, you mean they're saying that the GOP mantra of cut taxes or eliminate them is a lie? Get me a cold towel because I feel faint and am shocked. I was so certain that the Republicans were telling the truth this time. My entire world has been thrown upside down. Bloomberg:
The BGOV Barometer shows the nine states with the highest personal income taxes on residents outperformed or kept pace on average with the nine that don’t tax their residents’ incomes, according to a study of economic output, unemployment and household income by the nonpartisan Institute on Taxation and Economic Policy.How could it be that the "high tax" states showed much stronger growth than the no or low tax states when we've been told that is impossible?
The findings show cutting state income taxes to stimulate growth relies on “flawed analysis” based on the theories of economist Arthur Laffer, said Carl Davis, a senior analyst at ITEP in Washington and author of the report. Laffer’s work was cited by Republican Governors Sam Brownback of Kansas and Mary Fallin of Oklahoma as a reason to cut income taxes as a way to stimulate job growth and attract business.
“Being low-tax doesn’t generate economic competitiveness or long-term economic viability,” said Ralph Martire, executive director at the nonpartisan Center for Tax and Budget Accountability in Chicago. “There are other factors that are far more important. The state tax burden overall is marginal compared to federal tax burden.”