States Without Personal Income Tax Experience Slower Growth: Report

Small-government advocates often claim that high taxes hold the economy back. But a new report finds that states without a personal income tax have experienced slower economic growth than states with high income tax rates.

The report, from the Institute on Taxation and Economic Policy, found that between 2002 and 2011, the economies of the nine U.S. states without a personal income tax grew 37 percent less quickly per capita than states with high income taxes. Check out the chart below:

state income tax

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