A Proposition 30 Explainer – Hoover Inst.

Comment: Yes, high taxes do cause flight and other behavioral responses, as this study shows, as if that weren't obvious to Illinoisans. "Our results therefore predict that as of today, California is on the wrong side of the so-called Laffer Curve. That is, the only way that state authorities can reasonable increase revenues relative to what they would be without further policy action is to cut tax rates."

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