June 17, 2003

State tax increases hammer families twice. Worth quoting:

Higher taxes reduce economic growth over the long run, and thus impose a second loss on family incomes. This can be seen by ranking the 50 states by their overall tax burden and comparing state income growth from 1980 to 2000. Real personal income increased an average 96 percent during this period for the 10 states with the lowest state/local taxes (measured as a percent of income), but just 52 percent for the 10 highest-tax states. New Hampshire is notable as the lowest-tax state in the country and its 117 percent real income growth during the period.
Posted by Greg Ransom