Higher tax rates mean lower tax revenues

Alister Heath of City AM has produced some more good topical figures to show that lower tax rates bring more jobs and more wealth and income to tax. Apparently those states in the US like Texas and Florida which levy no additional state Income Tax on top of federal taxes have seen 89% more jobs created and 32% faster personal income growth than states with high state and local income taxes. As soon as one state introduces higher rate tax on the successful, they hop over the border into a low tax state, reducing the revenues of the high rate state instead of increasing them. It adds to the case I set out before, based in the UK’s past history of lower and higher income tax rates, and based on international comparisons. ...