The left-leaning Center on Budget and Policy Priorities has a very thorough analysis of state tax cuts during the latter half of the 1990s and the economic performance of those states since. While some of the tables and figures in the report are probably obscuring some contradictory data (note the comment about Michigan in the box on page 3), the overall analysis is startling. Tax cuts lead to slower economic growth, higher unemployment and bigger budget deficits.
A traditionally high-tax state like Minnesota should take note. A recent Minnesota Public Radio news story (I was unable to find a link) noted that Minnesota's advantage in the unemployment rate - versus the national average - is the smallest it's been in over 10 years. Is Minnesota becoming average by becoming average?
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