system
Given the following post, respond as if you're commenting on Reddit:
human
Would people actually be wealthier if they paid less tax?

If a government set all taxes to zero, would everybody actually be more wealthy? (Leaving aside the loss of government funded services for the time being) Would prices simply rise as people have more disposable income, undoing the benefits? Or would incomes decrease because people could settle for lower wages? 

What evidence is there on this topic?
gpt
There aren’t many places with zero tax, but since you’re looking for evidence, it’s easy to compare average incomes and average prices in a high tax area vs. a low tax area. The challenge is determining whether the differences are due to taxes or many other factors.

In the US, we all pay the same federal taxes, but state and local taxes vary widely. You could do some very interesting studies comparing the two largest states in terms of population and economic output: California (high income tax) and Texas (zero income tax). But there are so many other differences that one could refute many of the arguments that say the differences are due to taxes.