Mr. Pollock contends that there are “mountains of empirical data showing more job creation in states that tax and regulate lightly” and further argues that “high” taxes slow growth. In reality, studies find that the effect of state taxes on economic growth is typically quite small. State spending on education, infrastructure, highways, and public health matter at least as much as taxes in determining economic growth rates.
Prolonged growth in income inequality is a serious problem. States deserve accurate information as they weigh various steps to counteract it.