With a pro-tax Democrat in the White House and a lockdown-induced recession in the rearview mirror, a new clash among the states is breaking out.

While several Democratic strongholds have imposed big tax increases, claiming fiscal stress and the need for “equity” in taxation, a group of Republican-led states has cut levies.

Led by Texas, some Republican states have outperformed Democratic places in drawing new business investment. In 2020 alone, firms announced 781 new projects in the Lone Star State, more than double the number in the highest-ranked Democratic state, Illinois.