State tax rates impact individual welfare and revenue in surprising ways.
The article looks at how different state taxes in the U.S. affect tax revenue and individual well-being. They found that higher wage, sales, and property taxes can increase tax revenue, but higher dividend taxes can decrease it. People tend to suffer from higher wage, dividend, and sales taxes, but benefit from higher property taxes. The differences between states are determined by a TaxIndex, which is an average of initial taxes in each state.