◼ Do states do better economically in a higher or lower tax environment? - Michael Hausam/IJReview
Everyone has a gut reaction to this question, as does every governor - especially those with relatively high and low taxes.
Governors in low-tax states use that as a means to attract businesses. For example, Governor Rick Perry (R-Texas) famously ran ads in California last year, attempting to woo companies to relocate their operations there due to a lower cost of doing business.
Governors of states with higher taxes inevitably deny their effect on their state, or justify them based upon essential services, fairness, or necessity for sustaining revenue.
But what are the actual facts?
