Richard Rubin & Jeanne Whalen (WSJ): Red and Blue States Are Growing Further Apart on Income Tax
GOP-led states are looking to entice new residents with lower taxes, while Democratic-led states seek higher taxes on top earners to shore up budgets and social services
As Democrats and Republicans run in different directions, they are accusing each other of irresponsibility. Democrats warn that tax cuts will slash state revenue and services to the bone, pointing to Kansas’ failed tax-cut experiment in 2012-13, which caused a sharp slide in revenue and a downgrade of the state’s credit rating. Republicans caution that higher taxes will risk an exodus by wealthy residents who create jobs.
