Your logic is flawed: (1) Businesses and employees can split the benefits of lower income taxes and both be better off (both in theory and in practice it is nev

Your logic is flawed: (1) Businesses and employees can split the benefits of lower income taxes and both be better off (both in theory and in practice it is never an all or nothing choice). (2) Hopefully employees are not so stupid to care about the "feel good" of greater pre-tax income they will never see. (3) Lastly, lower salarys because of lower state taxes will also mean lower federal taxes because of progressive design federal tax rates.