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HM2VikingRN HM2VikingRN (New Member) New Member

Progressive taxation is NOT harmful to state economic performance

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In each of the correlations, the direction was the opposite of what would be expected if progressive taxation was detrimental to state performance. There was a slight tendency of states with more progressive state and local tax systems to perform better on each of the six state performance indices.

Why is this? One explanation is that states with the most progressive tax systems are better able to finance the educational and transportation infrastructure and the public services that a modern economy requires because they don't shift a disproportionate share of the burden of paying for these investments to households with the least ability to pay. The loss of high income households due to progressive taxation is offset by an increased ability to pay for public investments.


Facts are stubborn things.....

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