On Friday, the Washington Examiner posted an article about the fact that the recent census showed that states with lower taxes have higher rates of population growth than states with higher taxes. We have previously noted on this blog that when 'millionaires taxes' are put in place, millionaires leave the states where they are enacted. The article at the Examiner shows the actual statistics on the migration to low-tax states.
"Last Tuesday, my Examiner colleague Michael Barone did a good general breakdown of income tax rates versus population growth and found that 7 of the 9 states which have no income tax all grew higher than the national average while the 2 that didn't grew fastest in their regions."
This isn't really a surprise. It actually goes along with the idea that people, generally speaking, would like to keep as much of the money they earn as possible. That is not really a hard concept to grasp. It goes along with the idea that when the government taxes an activity you get less of it and when the government gives a tax break to an activity, you get more of it.
The article has charts and graphs showing how all the states compare in taxes and growth. It's an amazing article.
The article concludes that there is a reason that Texas is responsible for creating half the new jobs in the country last year--low taxes. Tort reform didn't hurt either!
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