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News & Politics News & Politics

Contrary To GOP Rhetoric, Low-Tax States Have Worse Economic Growth

Posted by on Mar. 1, 2013 at 8:26 AM
  • 16 Replies

Contrary To GOP Rhetoric, Low-Tax States Have Worse Economic Growth



Republicans love to claim that low-tax states such as Texas enjoy a disproportionate amount of economic success, while higher-tax states like California are economic basket cases. Republican governors in several states are using that rationale to propose gutting their state income taxes (and, in many instances, replacing them with regressive sales taxes).

But a new report from the Institute on Taxation and Economic Policy shows that so-called “high tax states” are actually experiencing more growth and less decline in income than states that are supposedly super-conducive to economic expansion:

In reality, states that levy personal income taxes, including the states with the highest top rates, have seen more economic growth per capita and less decline in their median income level over the last ten years than the nine states that do not tax income. Unemployment rates have been nearly identical across states with and without income taxes.

Here’s the breakdown:

– Four of the nine states without income taxes are actually doing worse than the average state in regards to economic growth per capita: Texas, Tennessee, Florida, and Nevada.

– Five of the nine states without income taxes are doing worse than average in terms of median income growth: New Hampshire, Florida, Tennessee, Alaska, and Nevada.

– Six of the nine states without income taxes had higher than average annual unemployment rates over the last decade: Texas, Florida, Tennessee, Washington, Alaska, and Nevada.

In fact, it was the “high tax” states that did the best in terms of growth, as this chart shows:





by on Mar. 1, 2013 at 8:26 AM
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Replies (1-10):
SallyMJ
by Ruby Member on Mar. 1, 2013 at 7:48 PM
4 moms liked this

Need to use the right statistics - or, I agree, things look screwed up. The ones listed here are not the usual ones the government looks at to determine growing economies. 

"Economic growth per capita" is irrelevant - it is economic growth that matters. You don't need to divide by the number of residents. 

"Median income growth" is irrelevant - it is income growth that matters. 

And "annual unemployment rates over the last decade" is looking back to 2003. The relevant rate is the unemployment rate now.

If you use the normal metrics used by the government, you get a different story - where the low tax states perform well, and the high tax states poorly.

amsp259
by on Mar. 1, 2013 at 10:04 PM
2 moms liked this
This article is a total fallacy
Posted on the NEW CafeMom Mobile
pvtjokerus
by Gold Member on Mar. 1, 2013 at 10:45 PM
2 moms liked this

CA bankrupt!  Michigan....in a financial crisis.  NY.....need I say more?!  And what do these states have in common.....liberals and those that feel that they are owed something........I'll take Texas over all states combined.

143myboys9496
by Gold Member on Mar. 2, 2013 at 12:51 AM
2 moms liked this

 That article is a complete and total fiction.

Massachusetts barely has a pot to piss in, their gov is proposing increasng payroll taxes (on top of the cut that just expired), because his sales tax increase backfired.

MA unemployment: 6.7%    New Hampshire unemployment 5.7%

CA and NV are tied at 9.8%    TX 6.2%   TN 7.6%   FL 7.9%   AK 6.6%    WA 7.5%

NJ 9.5%    NY 8.2%

I'd have put the whole table up but only the title would paste. So here's the link:

http://www.bls.gov/web/laus/laumstrk.htm

 

 

 

"A government big enough to give you everything you want, is a government big enough to take away everything that you have."---Thomas Jefferson

grandmab125
by on Mar. 2, 2013 at 1:38 AM
1 mom liked this

 As is everything nano posts.  She is another one who lives in an alternate reality.

Quoting amsp259:

This article is a total fallacy

 

grandma B

grandmab125
by on Mar. 2, 2013 at 1:47 AM
1 mom liked this

 And we can add IL, where our great dem gov increased our taxes in 2010  by 63% on personal and 45 on corp, driving companies and jobs out of the state, unemployment is at 8.6%.  Oh, and Alaska is only 6.6%.  SMH at where she gets the bs articles she posts.

The left just doesn't get it that higher taxes not only causes companies to flee, but residents do too.  Texas is enjoying their booming increase in businesses, thanks to having no personal and no corporate taxes.  The more jobs, the more money for people to spend in your state.

Quoting 143myboys9496:

 That article is a complete and total fiction.

Massachusetts barely has a pot to piss in, their gov is proposing increasng payroll taxes (on top of the cut that just expired), because his sales tax increase backfired.

MA unemployment: 6.7%    New Hampshire unemployment 5.7%

CA and NV are tied at 9.8%    TX 6.2%   TN 7.6%   FL 7.9%   AK 6.6%    WA 7.5%

NJ 9.5%    NY 8.2%

I'd have put the whole table up but only the title would paste. So here's the link:

http://www.bls.gov/web/laus/laumstrk.htm

 

 

 

 

grandma B

143myboys9496
by Gold Member on Mar. 2, 2013 at 6:06 AM

 Wait....so you're saying if I have more money in my pocket, I'll spend more money where I live...thereby...(dare I say it) STIMULATING THE ECONOMY???

Shut the front door!!!! jaw drop

Quoting grandmab125:

 And we can add IL, where our great dem gov increased our taxes in 2010  by 63% on personal and 45 on corp, driving companies and jobs out of the state, unemployment is at 8.6%.  Oh, and Alaska is only 6.6%.  SMH at where she gets the bs articles she posts.

The left just doesn't get it that higher taxes not only causes companies to flee, but residents do too.  Texas is enjoying their booming increase in businesses, thanks to having no personal and no corporate taxes.  The more jobs, the more money for people to spend in your state.

Quoting 143myboys9496:

 That article is a complete and total fiction.

Massachusetts barely has a pot to piss in, their gov is proposing increasng payroll taxes (on top of the cut that just expired), because his sales tax increase backfired.

MA unemployment: 6.7%    New Hampshire unemployment 5.7%

CA and NV are tied at 9.8%    TX 6.2%   TN 7.6%   FL 7.9%   AK 6.6%    WA 7.5%

NJ 9.5%    NY 8.2%

I'd have put the whole table up but only the title would paste. So here's the link:

http://www.bls.gov/web/laus/laumstrk.htm

 

 

 

 

 

Carpy
by Platinum Member on Mar. 2, 2013 at 6:15 AM

Michigan is improving.

Quoting pvtjokerus:

CA bankrupt!  Michigan....in a financial crisis.  NY.....need I say more?!  And what do these states have in common.....liberals and those that feel that they are owed something........I'll take Texas over all states combined.


143myboys9496
by Gold Member on Mar. 2, 2013 at 6:25 AM

 hmm..where would that be?

Obama-ville?

Quoting grandmab125:

 As is everything nano posts.  She is another one who lives in an alternate reality.

Quoting amsp259:

This article is a total fallacy

 

 

"A government big enough to give you everything you want, is a government big enough to take away everything that you have."---Thomas Jefferson

pvtjokerus
by Gold Member on Mar. 2, 2013 at 6:26 AM

 Wasn't it yesterday that Detroit declared a financial emergency due to their 14 billion in their long term debt?


Quoting Carpy:

Michigan is improving.

Quoting pvtjokerus:

CA bankrupt!  Michigan....in a financial crisis.  NY.....need I say more?!  And what do these states have in common.....liberals and those that feel that they are owed something........I'll take Texas over all states combined.



 

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