{"id":7287,"date":"2010-10-05T09:52:12","date_gmt":"2010-10-05T13:52:12","guid":{"rendered":"http:\/\/cfif.org\/v\/freedom_line_blog\/?p=7287"},"modified":"2010-10-05T09:52:43","modified_gmt":"2010-10-05T13:52:43","slug":"arthur-laffer-states-with-lower-income-taxes-enjoy-higher-growth","status":"publish","type":"post","link":"https:\/\/cfif.org\/v\/freedom_line_blog\/7287\/arthur-laffer-states-with-lower-income-taxes-enjoy-higher-growth\/","title":{"rendered":"Arthur Laffer:  States With Lower Income Taxes Enjoy Higher Growth, Income"},"content":{"rendered":"<p>Arthur Laffer brought us the famed <a href=\"http:\/\/www.heritage.org\/Research\/Reports\/2004\/06\/The-Laffer-Curve-Past-Present-and-Future\" target=\"_blank\">Laffer Curve<\/a>, which plotted how higher tax rates can paradoxically reduce incoming revenues by inhibiting economic growth.<\/p>\n<p>In today&#8217;s <a href=\"http:\/\/online.wsj.com\/article\/SB10001424052748703882404575520241519315372.html?mod=ITP_opinion_0\" target=\"_blank\"><em>Wall Street Journal<\/em><\/a>, Laffer adds to his legacy by showing how state income taxes lead to lower economic growth, personal income and population growth.\u00a0 The impetus for Laffer&#8217;s analysis is ballot Initiative 1098 in the state of Washington, which would impose a new 5% income tax on individuals earning over $200,000 or couples over $400,000 per year.\u00a0 An additional 4% would be heaped upon individuals earning over $500,000 or couples earning over $1 million.\u00a0 Laffer crunches the real-world economic numbers, which clearly demonstrate that this is a destructive idea.\u00a0 He shows that the nine states without a personal income tax enjoy 26.5% higher economic growth, 13.1% higher personal income growth and 9.4% higher population growth than the nine staes with the highest personal income tax rates. The highest-tax states also suffer 22% lower tax revenue growth and underperform in standard of living.<\/p>\n<p>As Laffer neatly summarizes, &#8220;Each and every state that introduced an income tax saw its share of total U.S. output decline.&#8221;\u00a0 He can&#8217;t stop states from descending into economic self-destruction, but he provides a great service by providing this warning beacon.<\/p>\n","protected":false},"excerpt":{"rendered":"<p>Arthur Laffer brought us the famed Laffer Curve, which plotted how higher tax rates can paradoxically reduce incoming revenues by inhibiting economic growth. In today&#8217;s Wall Street Journal, Laffer adds to his legacy by showing how state income taxes lead to lower economic growth, personal income and population growth.\u00a0 The impetus for Laffer&#8217;s analysis is [&hellip;]<\/p>\n","protected":false},"author":4,"featured_media":0,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[1],"tags":[19,102,1078,27,1911,24,1912,105,71,28],"class_list":["post-7287","post","type-post","status-publish","format-standard","hentry","category-posts","tag-economy","tag-free-market","tag-income-tax","tag-jobs","tag-laffer","tag-obama","tag-states","tag-tax","tag-taxes","tag-tea-party"],"_links":{"self":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7287","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/users\/4"}],"replies":[{"embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/comments?post=7287"}],"version-history":[{"count":3,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7287\/revisions"}],"predecessor-version":[{"id":7291,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/posts\/7287\/revisions\/7291"}],"wp:attachment":[{"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/media?parent=7287"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/categories?post=7287"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/cfif.org\/v\/freedom_line_blog\/wp-json\/wp\/v2\/tags?post=7287"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}