I’ve said this a zillion times – taxes affect economic activity. Taxes have a huge incentive effect. And people do vote with their feet. So here’s some proof that the states with the lowest tax rates attract businesses and promote growth.

A separate analysis by IBD found that states imposing the lowest tax rates on both new and existing businesses produced more jobs during the economic recovery than those states with the highest tax burdens.

In fact, the five states with the lowest tax rates on both new and existing companies saw jobs climb an average 1.14% since the recession ended in June 2009. The overall low business tax states are Wyoming, Nebraska, Georgia, Ohio and Utah.

In contrast, the five states with the highest business tax rates — Pennsylania, Massachusetts, Hawaii, Kansas and Rhode Island — had payrolls grow an average of just 0.75%. That’s a 52% difference.

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