If you look at the performance of the zero-income-tax-rate states and the highest-income-tax-rate states, I believe a large amount of their difference is due to taxes. Not only is it true of the last decade, but I took these numbers back 50 years. And, there's not one year in the last 50 where the zero-income-tax-rate states have not outperformed the highest-income-tax-rate states.
Arthur LafferIt is not true that Congress spends money like a drunken sailor. Drunken sailors spend their own money. Congress spends our money.
Arthur LafferPeople can also change the timing of when they earn and receive their income in response to government policies.
Arthur Laffer