Abolish State Income Taxes | Richard W. Rahn | Cato Institute: Commentary

Abolish State Income Taxes | Richard W. Rahn | Cato Institute: Commentary: "Why is it that some of the states with the biggest fiscal problems have the highest individual state income tax rates, such as New York and California, while some of the states with the least fiscal problems have no state income tax at all?"

"On average, schools, health and safety, roads, etc. are no better in states with income taxes than those without income taxes."

"the high-tax-rate states also, on average, have much higher per capita debt levels than states without income taxes."

"those states whose government workers are less than 40 percent unionized have median per capita state debt of $2,238, while those states where unionization rates are over 60 percent have a median per capita state debt of $6,380."

"Jurisdictions that imposed an income tax to generate a given level of revenue experienced lower rates of economic growth relative to jurisdictions that relied on alternative taxes to generate the same revenue."

"Income taxes, as contrasted with consumption (i.e., sales) taxes and modest property tax rates, are far more costly to administer and do far more economic damage (by discouraging work, saving and investment) and are far more intrusive on individual liberty. The states without state income taxes overall have had far better economic performance for most of the past several decades than have the income tax states — particularly those with high marginal taxes."