On Tuesday (6/12/12), Grover Norquist spoke to Your World’s Neil Cavuto about North Dakota’s vote to possibly eliminate property taxes (the measure was rejected). The subject switched to income taxes, which Norquist is famously against.
“What they ought to be doing in North Dakota is abolishing the income tax… We do need to come back and look at having North Dakota do what South Dakota has, no income tax. Nine states have no state income tax… It is sustainable to go without a personal income tax because of all that lovely oil money.”
Cavuto said, “Well they’re enjoying those riches but that might be short lived, so they might be premature ripping their nose off to satisfy the rest of their face.”
Norquist said, “States without income taxes …grow much faster, much more population growth, have more wealth and income creation.”
But Norquist is wrong. The high tax states outdo the no income tax states in per capita economic growth and median family income, and are even in average unemployment rate over the last decade.
It was a point that Cavuto somehow missed.