In response to:

States with No Income Tax Grow Faster and Create More Jobs

JRM57 Wrote: Dec 16, 2012 11:01 AM
If it were true that states with no income tax fare better than states with income tax, then why is Nevada one of the worst states to live in economically speaking, with the highest unemployment rate in the country? And Florida also is economically bad?
Pistol Wrote: Dec 16, 2012 12:48 PM
Good question, JRM57, easily answered. Florida and Nevada are playground states. In good times they boom, as people spend money on play. In bad times, folks don't spend money on trips to Vegas or Disneyworld. So Nevada and Florida are like the canary in the coal mine. Whether times are good, or bad, they are indicator states.

Why are all the states leading the way into bankruptcy, like California, Illinois and RI, high tax, union-dominated, Knee-jerk Dem states?
Pistol Wrote: Dec 16, 2012 12:48 PM
Good question, JRM57, easily answered. Florida and Nevada are playground states. In good times they boom, as people spend money on play. In bad times, folks don't spend money on trips to Vegas or Disneyworld. So Nevada and Florida are like the canary in the coal mine. Whether times are good, or bad, they are indicator states.

Why are all the states leading the way into bankruptcy, like California, Illinois and RI, high tax, union-dominated, Knee-jerk Dem states?
Texas Chris Wrote: Dec 17, 2012 9:28 AM
Also, real estate. Florida and Nevada are both big condo states. HUGE developments went UN-occupied.

One of the key ways of controlling state and local tax burdens, according to this map from the Tax Foundation, is to not have an income tax.

But that’s not too surprising. States have just a couple of ways of generating significant tax revenue, so it stands to reason that states without an income tax would have relatively low tax burdens.

Light-blue states have no broad-based income tax

The more important question is whether this approach leads to better economic performance. The evidence is pretty clear that zero-income-tax states grow...