The council analyzed the replacement of state income tax collection with sales tax revenue and limiting state service expansion.
The White House Council of Economic Advisers released a study regarding the impact of the elimination of tax income tax on Gross Domestic Product (GDP) and migration.
The council stated, “For years, no-income-tax states like Texas, Tennessee, and Florida have often led the pack in attracting and retaining residents looking to put down roots where they do not have to split ownership over the fruits of their labor with state government. In particular, of the 9 states that currently have no personal income tax, 5 of them rank amongst the top 10 states in terms of GDP growth over the past decade and 4 of them rank amongst the top 10 states in terms of net migration rates from other states.”
The council added, “An increasing number of states with income taxes have indicated an interest in transitioning away from the income tax through some combination of belt-tightening and finding less damaging forms of tax collection.”
The study analyzed the replacement of state income tax revenue with a broad sales tax, or a combination of a broader sales tax base with a limit on spending growth that maintains government services at current levels.
As the Lord Leads, Pray with Us…
- For the chair and members of the Council of Economic Advisers as they study the nation’s and states’ economies.
- For President Trump to seek God’s guidance as he works to improve employment and industry in the U.S.
- For Treasury Secretary Bessent as he fills the role of IRS commissioner in an interim capacity.
Sources: The White House
