The scholarly literature suggests high or increased tax burdens tend
to reduce economic growth, lowering incomes. Some argue, however, that low
taxes and high economic growth can have adverse income distribution
consequences or can lead to utility-reducing under-consumption of needed
public goods. Evidence is presented questioning those assertions. People
seek happiness by moving, and tend to migrate to low tax areas. Moreover,
there is little evidence that governmental expansion leads to truly
greater equality. Appropriately measured, income equality is actually far
greater than typically claimed. Moreover, income data suggest that the
international equalization of incomes and global reduction of poverty
largely reflect private sector activity, namely market forces working
where the rule of law and strong protection of property rights
prevails.
The Relation of Census Income Distribution Statistics to Other Income Data