Meanwhile, Tennessee is adding 76 people a day, and Texas is adding 380 people every day. [1]
Missouri has been losing wealth to other states.
Between 1995 and 2008, Missouri lost $1.5 billion in Net Adjusted Gross Income to other states. In that same period, no-income tax states Tennessee, Texas and Florida gained $6.6 billion, $15 billion, and $73 billion respectively. [2]
Missouri’s relative economic growth ranks 48th.
Missouri’s Real GDP Growth in the last decade ranked a dismal 48th, with comparable states like Tennessee achieving substantially better economic growth. [3]
[1] Current Population Survey Data on Geographic Mobility/Migration; time period 2005-2009. [2] IRS Tax Filer Database. [3] U.S. Bureau of Economic Analysis
“ Just catching up to the national average in growth would add $50 billion to Missouri’s gross state product, while joining the states with no income tax would add $100 billion to Missouri’s gross state product.
During the past 10 years, if Missouri had just caught up with the average of states with no income tax, the average Missouri resident’s income would be more than $12,000 higher.”
- Art Laffer Rich States, Poor States 3rd Ed.
OUR STATE TAX STRUCTURE HURTS GDP, POPULATION & WEALTH PERFORMANCE
Missouri has dropped from 7th to the 18th most populous state in the nation since 1910, going from 16 Congressional seats in 1910 to only 8 in 2010. [1]
When we lose wealth, Missouri loses permanent tax revenue.
Without growth, we don’t keep or grow jobs.
[1] Missouri’s Population Trend Over the Last 100 Years, Eric Ostermeier, March 2, 2011
WHY DOES TAXING INDIVIDUAL INCOME HURT US MORE THAN OTHER MODES OF TAXATION?
Income is more mobile and harder to collect than local investment or consumption.
Reduces returns to those who produce and those who employ.
Creates huge swings in state revenues, raising more uncertainty for whose who depend on our state services.
State of Our State
Missouri only grows by 18 people a day.
Meanwhile, Tennessee is adding 76 people a day, and Texas is adding 380 people every day. [1]
Missouri has been losing wealth to other states.
Between 1995 and 2008, Missouri lost $1.5 billion in Net Adjusted Gross Income to other states. In that same period, no-income tax states Tennessee, Texas and Florida gained $6.6 billion, $15 billion, and $73 billion respectively. [2]
Missouri’s relative economic growth ranks 48th.
Missouri’s Real GDP Growth in the last decade ranked a dismal 48th, with comparable states like Tennessee achieving substantially better economic growth. [3]
Rich States, Poor States 3rd Ed.
OUR STATE TAX STRUCTURE HURTS GDP, POPULATION & WEALTH PERFORMANCE
WHY DOES TAXING INDIVIDUAL INCOME HURT US MORE THAN OTHER MODES OF TAXATION?
REVENUE VOLATILITY
Next: A Plan of Action