What Having No Income Tax Gets a State During a Pandemic

Source: Harold Meyerson, The American Prospect, TAP blog, February 16, 2021

….The states with the most progressive income taxes, it turns out, have been able to ride out the pandemic with little if any fiscal disruption. California, perpetually derided by right-wingers for having the most progressive income tax, actually saw no reduction in revenues between 2019 and 2020, as the wealthy have been doing just fine financially during the plague and paying their regular share of taxes. Likewise New York, Massachusetts, and Pennsylvania, which saw revenues dip by just 3 percent. Florida and Texas, by contrast, are by far the largest states that have no income taxes, and they saw their revenues decline by 10 percent. As for reduction in public-sector jobs, good old “Live Free or Die” New Hampshire—another state with no income tax—saw its state workforce shrink by a mind-boggling 26 percent, a full nine percentage points more than the second-ranked state…..