Amount Quote by Arthur Laffer
“If you look at the performance of the zero-income-tax-rate states and the highest-income-tax-rate states, I believe a large amount of their difference is due to taxes. Not only is it true of the last decade, but I took these numbers back 50 years. And, there's not one year in the last 50 where the zero-income-tax-rate states have not outperformed the highest-income-tax-rate states.”
About This Quote
Source Speech: Economic Policy Forum, 1992
States with zero income tax historically outperform high-tax states, suggesting tax rates impact economic performance.
In simple terms: Low-tax states have outperformed high-tax states over decades.
Key Takeaway
Tax policy influences economic outcomes.
Themes
economics
public policy
taxation
Mood
analytical
critical
Type
economic
policy
When to use this quote
- state budgeting
- investment decisions
- business climate
Key Concepts
economic theory
historical data
Questions to Reflect On
- What other variables could explain the gap?
- Can tax cuts alone drive growth?
A Different Perspective
Other factors like demographics also affect performance.
