In 2005, per capita personal income grew 31% faster in the 15 most economically free states than it did in the 15 states at the bottom of the list. And employment growth was a staggering 216% higher in the most free states.
In 2005, the 15 states with the most economic freedom saw their general fund tax revenues grow at a rate more than 6% higher than the 15 least free states, despite their lower effective tax rate. Instead of blowing a hole in state budgets, lower tax rates rewarded productivity and risk-taking and allowed the economy to grow.
As our state legislators discuss whether or not to provide a tax cut as state revenue forecast continue to grow
, they would do well to consider the paragraphs above. More jobs, more income, more tax revenue (which we can use to cut taxes again!). Seems like a win-win.
I'm sure the liberals down there will mess it up.