Monday, May 18, 2009

WSJ: When state tax policy loots the rich, the rich hit the road

Great read on the real effect of soaking the rich in the name of "fairness." From the Wall Street Journal:

Updating some research from Richard Vedder of Ohio University, we found that from 1998 to 2007, more than 1,100 people every day including Sundays and holidays moved from the nine highest income-tax states such as California, New Jersey, New York and Ohio and relocated mostly to the nine tax-haven states with no income tax, including Florida, Nevada, New Hampshire and Texas. We also found that over these same years the no-income tax states created 89% more jobs and had 32% faster personal income growth than their high-tax counterparts.

Perhaps more governors need to add Atlas Shrugged to their summer reading list.

And just for good measure, here is the Heritage Foundation's analysis of recent and projected federal budget deficits:

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