Soak the Rich, Soak the Poor

Heartland Institute:

1. High taxes encourage the wealthy to move to lower-taxed states, bringing much of their income, capital, and ultimately tax revenues with them.

2. High taxes discourage capital from flowing into a state, thereby preventing more jobs from being created.

3. High taxes make it more difficult to attract high-income people to a state.

4. Relying on a small number of taxpayers for a large portion of tax revenue can lead to larger budget deficits than experienced by states with broader and flatter tax systems.

HT Illinois Policy Institute, good post. Check out Budget Solutions 2010: Balancing the Budget without Tax Hikes.