Part 6/11:
One panelist pointed out that states like Washington, which previously had no income tax, now impose a 10% tax on individuals earning over a million dollars, incentivizing high earners to leave. Neighboring states like Idaho, with a flat 5.3% income tax and more freedoms, are attracting these migrants.
The panelists suggest that the political landscape and the influence of public-sector unions complicate efforts to reform. State governments often remain beholden to these entities, which oppose lowering taxes or reducing spending, further perpetuating economic decline in high-tax regions.