[SeekAndFind]

Author observes:

States without income taxes also tend to rely more heavily on sales and excise taxes, which fall disproportionately on moderate-income families. Balancing the budget on the backs of families who lack a stable financial footing is unsustainable in the long run, and it runs the risk of dampening consumer spending that fuels so much of our nation’s economy.

[KC_Lion]

How about the government just do with less?

That is what you have to do every time you pay your taxes.

[Tzimisce]

Yeah - the Obama administration was pouring money in to the states that supported him.

The economy didn’t grow because they raised taxes.

The economy grew because your Congress and President were picking winners and losers.

Thanks for the money btw. :)

[Blue House Sue]

It’s the property tax that takes the biggest bite and hampers growth.

[Socon-Econ]

The people doing all the relocating to red states disagree.

[mewzilla]

Q for the author of this swill: Really? Then why in HADES has NYS been hemorrhaging House seats for DECADES?!

[AC86UT89]

This makes perfect sense. To take the argument to its logical conclusion, all the states should have income tax rates of at least 80% or maybe even 100%. That way we can really get those economies moving.

[ASOC]

Political stance
ITEP’s quantitative analyses are utilized by observers from across the political spectrum and by analysts within government.

ITEP, as well as the associated Citizens for Tax Justice, has been characterized as liberal.

That’s pretty mild a description.

All you have to do is a simple web search for the outfit and see who quotes these folks the most.

(Hint - it is not conservatives)

[OrangeHoof]

It’s BS but if it means more people stay in NY, Ill and CA, go right ahead and believe it.

[Beagle8U]

Good deal. Now just remove the deductibility of those high tax liberal puke states and they will be tax heaven!

[<1/1,000,000th%]

Texas and Florida are underachieving?? I doubt it.

[central_va]

More tariffs and less income taxes.

[Repeal 16-17]

Many lawmakers in Congress and in statehouses around the country peddle the same supply-side theory about income taxes: the lower the tax, the more the economy will grow. But new research from the Institute on Taxation and Economic Policy reveals this economic approach is failing to deliver in the states. In fact, states with higher income taxes outperformed states with no income tax.

The ITEP is a liberal organization, so of course it would attack supply-side economics and promote higher taxes.

[Pete Dovgan]

So.....if you have high state income tax, you deduct it from your federal taxes. Therefore, you keep the money at home but take the same share from the federal government in services. High state taxes, with deduction on federal taxes, is cost shifting your states federal expenses to another area or state. Specifically, it shifts the burden to states that have kept state taxes low, and MOST of those contain poorer people. This is what I call Reverse Robin-hood syndrome, which means stealing from the poor to enhance the rich, then saying it’s the poor people fault. Yes, stealing from the poor results in better conditions for those that have stooped to this moral degeneracy, as this Fortune magazine article demonstrates.

I have a great idea, you should be unable to deduct your state taxes from your federal government responsibilities, then let’s redo the math on the “Supply side failure”

[Nifster]

Utter nonsense

[Undecided 2012]

I want a flat Federal Tax, no deductions whatsoever.

[vpintheak]

Us Alaskans would disagree.

[steve8714]

DUUH, New York has the financials; California has the Movies and TV. Skews the findings.

[Recompennation]

The same conclusuioners that said breaking windows stimulated the boconony. Makes just as little cents.

[KingofZion]

What is completely missing here is the cause and effect relationship, not to mention cross-segmentation.

The fact that taxes are high in CA and NY is not the cause of their economic success, though conversely I suspect that Texas would be pretty barren if it had a large income tax.

And of course the experience varies depend on your status. If you are a poor unemployed schmoe who doesn’t want to work of course you are better off in high income tax states where everything is handled to you on a platter including free housing, food, cell phones, internet, etc. States without income taxes tend to have less generous benefits for those permanently on the dole. Conversely, the business owner who works his butt off is much better in a no tax state v. CA and NY where you will pay a fortune in taxes.