[Ed. – Economics at work]
When I wrote a few days ago that the Trump tax reform was generating good results, I probably should have specified that some parts of the country are not enjoying as much growth because of bad state tax policy.
This presumably helps to explain why Americans are voting with their feet by moving to states where the politicians are (at least in practice) less greedy.
Writing for Forbes, Chuck DeVore of the Texas Public Policy Foundation shares data on how and why lower-tax states are out-performing higher-tax states.
Job growth has been running 80% stronger in low-tax states than in high-tax states since the passage of the Tax Cuts and Jobs Act of 2017 in December 2017. Understanding why holds important lessons for policy, economics, and politics. The new tax law scaled back the federal subsidy for high state and local taxes.