Richard W. Rahn, a senior fellow at the Cato Institute and chairman of the Institute for Global Economic Growth writes about the nine states that have no state income tax and why the other states should follow suit.
It turns out that the states without state income taxes have had "far better economic performance for most of the past several decades" than those states with state income taxes. Some of the states with the worst fiscal problems have the highest individual state income taxes, like New York and California, while some of the states with no state income tax have the least fiscal problems.
People are already moving from high-tax states to lower-tax-rate states. Next year, the combined federal, state and local income tax rate in New York City will be over 50 percent (wow!) compared to around 38 percent for Texas and Florida, which is why many people are moving to these states.
Will good economics result in good politics?