Imperial Research Dossier of Trumpius Caesar

On the Glorious Liberation of the People from State Income Taxation

Trumpius Caesar Research

The Economic Consequences of Abolishing the State Income Tax
Imperial Court of Prosperity
January XXVIII, MMXXVI

Executive Summary (Approved by the Eagle Standard)

For many cycles of the political sun, the imperial economists of Trumpius Caesar have observed a phenomenon so obvious it borders on sorcery: people prefer to live where the state does not confiscate a slice of every paycheck like a routine ritual sacrifice.

Provinces without an income tax — such as Texas, Florida, and Tennessee — consistently rise like marble monuments of prosperity. Citizens arrive, settle, work, build companies, and commit the ultimate heresy: they keep more of what they earn.

Meanwhile, high-tax provinces like California, New York, and their heavily regulated cousins experience a quieter drama. There are no protests, no speeches — just moving vans, outbound flights, and a noticeable shortage of taxpayers who once paid the most.

Purpose of This Imperial Study

This research examines the economic impact and feasibility of phasing out state income taxes. Even an empire requires revenue (roads must be paved, statues polished), so the analysis evaluates two reform paths:

Scenario I – The Revenue-Neutral Swap
The income tax is eliminated and replaced by a broader sales tax base. Total tax revenue remains unchanged, but economic damage is reduced.

Scenario II – The Disciplined Republic
The broader sales tax is paired with limits on government spending growth. Public services remain intact, but no longer expand endlessly like an unchecked bureaucracy vine.

Methodology of the Imperial Economists

Each state is analyzed individually, focusing on:

• GDP growth
• Wage levels
• Business formation
• Migration of high-income taxpayers
• Required sales tax rates under each scenario

In short: where the empire grows — and where it quietly empties out.

Lessons from the Scrolls of Economic Wisdom

Across decades of economic literature, several truths remain stubbornly consistent:

• Income taxes are more economically harmful than sales or property taxes
• They drive out talent, entrepreneurs, and innovators
• They suppress growth, wages, and business formation
• They create volatile “feast or famine” revenue cycles
• Tax hikes often fail to raise meaningful new revenue, as the tax base relocates

In imperial terms: squeeze the goose too hard, and it migrates.

Key Findings of the Trumpius Analysis

Phasing out the state income tax produces, on average:

• 1.0–1.6% increase in GDP
• 16–19% increase in new business startups
• $4,000 increase in average wages
• A strong influx of high-income taxpayers
• Sales tax below 8% with full revenue replacement
• Sales tax around 6.2% when paired with spending limits

Results so clear they could be engraved on stone tablets — or campaign banners.

Closing Words from the Imperator

This research confirms a principle as old as empires themselves: when the state takes less from labor, labor produces more. Prosperity grows, citizens stay, and revenue becomes more stable — not through force, but through success.

Or, as Trumpius Caesar might decree:
“Let the people keep their earnings — and they will build you an empire.”