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Can States Really Boost Growth By Cutting Top Individual Tax Rates? Study Says No.
Forbes: States can generate powerful economic growth by cutting income tax rates.
That, at least, is the theory behind a recent wave of tax cuts, or proposed tax cuts, around the country. Kansas has cut taxes repeatedly in recent years. So has Wisconsin. In Maine, Governor Paul LePage vows to repeal his state’s income tax entirely. But does economic research support the claim? Can a state boost growth by cutting income tax rates, especially top tax rates. Or conversely, would it retard growth by raising them?
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