Economics, unlike physics or chemistry, is not a “hard” science. In other words, the results are open to a great deal of interpretation. This is largely because economics deals with humans, the long-term actions of which are difficult to re-create in controlled experiments.
Economist Scott Moody who has done a great deal of work for the Rio Grande Foundation on government pensions and other issues, but some research he’s done comparing the economic histories of Maine and New Hampshire shows the power of leaving money in the pockets of ordinary citizens instead of government bureaucrats. New Hampshire lacks both a personal income tax and a sales tax while Maine has adopted both over the years.
These policies have led to higher incomes, greater migration, and fewer job losses during the recession for New Hampshire. I’d love for New Mexico to attempt to compete with Texas by eliminating the personal income tax. That alone would be a boon to the state.