How States Compete (And Why Maine Is Losing)
Eight states now have ZERO income tax. Thirteen more are on automatic paths to zero. That’s 21 out of 50 states moving aggressively to lower taxes and attract business, talent, and families.
Meanwhile, Maine has the 5th highest tax burden in the nation. If you earn under $100,000/year (the vast majority of Mainers), you pay the HIGHEST income tax rate in all of New England.
This is not accidental. This is strategic policy, and it’s reshaping which states win, and which lose.
My guest, Grover Norquist is the president of Americans for Tax Reform and the creator of the Taxpayer Protection Pledge, a political tool that has transformed Republican politics since 1986. In this episode, he breaks down:
- Why 21 states are moving toward zero income tax (and what makes them competitive)
- North Carolina’s bold move: cut income tax in HALF in 4 years (with $2B budget buffer)
- The Taxpayer Protection Pledge: why it works, how it’s used politically, and why zero Democrats will sign it
- Maine’s specific problem: high taxes + hostile business climate = brain drain and zero growth
- Property tax caps (Prop 13 model, Arizona’s approach)
- School choice as a spending-control tool (14 states)
- How businesses choose where to locate (spoiler: Maine isn’t on their list anymore)
- What Maine can do right now: Use the initiative process to put tax/spending limits on the ballot
