The states with the highest unemployment rates just happen to also have high marginal tax rates, high unionization, or both.
2 thoughts on “Just A Coinkydink, I’m Sure”
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The states with the highest unemployment rates just happen to also have high marginal tax rates, high unionization, or both.
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His tax numbers are a bit misleading. Without looking at both income taxes and sales taxes, you don’t get an accurate picture of the taxation levels. Oregon for example ends up on his list of high marginal income tax rates, but that is at least partially due to it having no sales tax.
I disagree, TL. An accurate picture of the taxation levels isn’t what is desired here. We’re interested instead in how much cost, taxes and unionization impose on marginal employment. It’s not clear to me that sales taxes impose a significant increase in cost of marginal labor (the cost of an extra unit of labor). I imagine sales taxes do increase the cost of living which in turn affects employment costs. But it’s mostly a fixed cost. OTOH, income taxes are a straightforward increase in the cost of a little more labor as is unionization.