As I just stressed on a CNBC debate, they’re a lot less connected than the typical anti-tax talking point would lead you to believe.
The claim was that taxes are driving millions from their high-tax states to low tax havens. The evidence, as I emphasized, says otherwise.
This is more Laffer curve fairy dust–in fact, Laffer relocated his family from CA to TN to avoid taxes. But–and Art is a good old buddy of mine–he’s…um…unusual. Most people don’t have that same response function so you know what happens when states cut taxes? They lose revenues.
Update: Steve Roth at Angry Bear does nice work on this silliness. (H/t: rjs)