Another GOP myth debunked: low-tax states do not have greater economic growth


Posted by AzBlueMeanie:

By now we should all be able to agree that when it comes to economics, everything the GOP believes is a myth, urban legend, superstition or fantasy. It is a unified theory of magical unicorns.

The latest GOP myth debunked is that low-tax states enjoy a disproportionate amount of economic growth. Contrary To GOP Rhetoric, Low-Tax States Have Worse Economic Growth:

[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:


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AZ BlueMeanie
The Blue Meanie is an Arizona citizen who wishes, for professional reasons, to remain anonymous when blogging about politics. Armed with a deep knowledge of the law, politics and public policy, as well as pen filled with all the colors stolen from Pepperland, the Blue Meanie’s mission is to pursue and prosecute the hypocrites, liars, and fools of politics and the media – which, in practical terms, is nearly all of them. Don’t even try to unmask him or he’ll seal you in a music-proof bubble and rendition you to Pepperland for a good face-stomping. Read blog posts by the infamous and prolific AZ Blue Meanie here.


  1. Thank you! This post reminds me of a report from the Center for Budget & Policy Priorities entitled “Tax Flight Is a Myth.” The report shows that state-to-state migration (to avoid paying higher state taxes) is remarkably insignificant, i.e., it just doesn’t happen. Perhaps the CBPP title should have been “Tax Flight Is a Fundamental Component of the Unified Theory of Magical Unicorns.”