Taxes: Equity versus Efficiency? Not so Much

May 7th, 2010

Just following up on my recent post showing that progressivity in state taxes seems to have no significant relationship to prosperity:

These findings suggest to me that the supposed tradeoff between equity and economic efficiency is a false choice (by this measure, at least). More equitable states (far more equitable) are just as prosperous, at least in aggregate, as states with wildly draconian tax regimes.

So if we can have both equity and efficiency, why shouldn’t we?

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