Texas and Kansas are the homes of low taxes, low wages and fewer regulations. California is the state of high taxes (especially on the rich), high wages and more regulations. According to conservative economic gospel, Kansas and Texas should be outperforming California.
However, the reality is the opposite. California easily outperforms Kansas and Texas and any other states that are low tax, low wage, and fewer regulations. Robert Reich explains why in the video above.
On the other hand, Minnesota is a higher tax state than Wisconsin. Guess which one is performing the best. You bet. It’s Minnesota.
Forbes magazine listed Minnesota No. 9 in its 2014 ranking of best states for business, even though it had a higher tax rate than Wisconsin. In this same ranking, Wisconsin rated number 32.