America’s Income Taxes Are Diverging

The Economist: “State tax systems are diverging. Much attention has been paid to Democrats’ efforts to raise taxes on the rich. Washington state, for example, introduced an income tax on millionaires this year, and in November Californians will vote on a wealth tax. But Republican-led states are moving in the other direction. Over the past five years 26 states—most led by Republicans—have reduced their individual income-tax rates. Missouri’s top marginal rate has fallen by more than 20% since 2017.”

“This widening disparity is relatively new. Democrats and Republicans have always differed on taxes, but historically states tried to stay within a range that raised revenue without dampening economic activity.”