There is a close relationship between state wealth (as measured by personal income) and tax effort, which can be measured by tax burden.

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Tax burden refers to the proportion of personal income that individuals or businesses pay in taxes. Generally, there is a positive correlation between state wealth (as measured by personal income) and tax effort (as measured by tax burden). Wealthy states tend to have higher tax burdens, while poorer states tend to have lower tax burdens. This is because wealthy states have more resources to fund public services and programs, so they may be more willing to collect higher taxes to support these initiatives.

There Is a Close Relationship Between State Wealth (As Measured