I've heard the add several times. 

  The part that I think is very misleading is "every state that instituted an income tax since 1960  experienced economic decline"

  When you first hear this it makes it sound as though right after an income tax was imposed, the tax caused an economic decline. 
     Put another way, one might think (as the add is no doubt intended to lead you to belueve) that the income tax CAUSED economic decline. 

   That's certainly not true. And very misleading. 

    While it's no doubt true that states that have implemented an income tax since 1960 (which is all but a select few states) have had economic declines (as well as upswings) in the last 70 years, its more than just a stretch to try to connect an income tax to either the declines or the upswings. 

   Pretty dishonest if you ask me.