Some states, including Texas and Washington, have NO state income tax. Their economies and real estate are doing quite well. Our far-left Sacramento legislators, OTOH, are now pushing for a higher income tax. Another reason the high achieving, high earning middle and upper class is fleeing CA.
I am from Washington state. Yes, there is no income tax, but the property tax usually increase every year and the sale tax is high. If I remember correctly, Washington still has the heavies tax burden per-individual. As for economy, Washington is about the same as California. However, since it is run by fiscal conservative democrats for decades, Washington’s budge is fine unlike the California. If I can get a job in Seattle, I will move back without a thought (SD feels hollow for me).