Taxes drive business out of state, deter new businesses from moving to Minnesota and prevent new businesses from starting here. Oh, and they also drive away rich people who pay income taxes.
We hear this sort of conservative tax critique based on anecdotal "evidence" that businesses are leaving the state. A factual response to this canard can rapidly get too wonky for most voters. That's why the anti-tax crowd can get away with it. The best response to these claims is, "Oh yeah? Prove it."
Here are some of the reasons you should be very, very skeptical about such claims.
Business relocation is a poor measure of state business climate. A study on job loss resulting from California businesses fleeing the state found "the shift of employment of California-headquartered companies to other states has been offset by increased employment in the state by firms headquartered elsewhere, with the result that California
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