Clark has long believed high tax states suffer mightily as entrepreneurs and large businesses naturally move away because of unfavorable tax policies. In his mind, it's a simple issue of business wanting to follow the path of least resistance and keep more of each dollar it generates.
Now his belief is substantiated in a new study out of Ohio University, according to
The Wall Street Journal. Over the course of 10 years, the study found that states with no state income tax created 89% more jobs than states with high taxes. Personal income was also 32% larger in states with no state income tax.
And it's not just geography that's a factor here; states with no tax are all over the country.
Look at New Hampshire vs. Massachusetts as an example. New Hampshire has steadily gained more company headquarters and entrepreneurs as people flee neighboring "Taxachusetts" and Vermont to cross the border into the "Live Free of Die" state.
More than 1,100 people move from the 9 highest income tax states to states with no income tax every single day. But it's not only states that are competing with each other for residents and businesses. Jobs can migrate around the globe, so we need to keep our taxes low to retain the best opportunities.
States may have to make the difficult decision to offer fewer services instead of raising taxes. Government can't provide everything we want without consequence.