Saturday, December 16, 2006

Want to reduce poverty? Then reduce tax rates

"Using data from the Census Bureau, the report found that states with the lowest tax rates enjoyed sizable decreases in poverty. For example, the 10 states with the lowest total state and local tax burdens saw an average poverty reduction of 13 percent - two times better than the national average. The 10 highest-tax states, meanwhile, suffered an average increase in poverty of 3 percent."
Lower tax burden means more economic growth which means more jobs which means less poverty.