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Proponents of graduated-rate income tax systems tend to view them as a way to address income inequality, but researchincluding a study by Feldstein and Wrobel (1998)shows that higher marginal rates lead to a relocation of capital and higher earners to more favorable tax environments.[44] This not only undercuts the states efforts to expose high earners to higher taxes, but also reduces the income of lower-income individuals who remain, due to reduced opportunities and a less competitive economic environment

[23] Timothy Vermeer and Katherine Loughead, State Individual Income Tax Rates and Brackets for 2022. [24] Dan Spika, Individual Income Tax: Informational Paper #2, Wisconsin Legislative Fiscal Bureau, January 2021, 31, [25] Timothy Vermeer and Katherine Loughead, State Individual Income Tax Rates and Brackets for 2022. [26] Jared Walczak, Iowa Enacts Sweeping Tax Reform. [27] John K