A passionate, detailed, quantified argument for state-level
tax reform
An Inquiry into the Nature and Causes of the Wealth of
States explains why eliminating or lowering tax burdens at the
state level leads to economic growth and wealth creation. A
passionate argument for tax reform, the book shows that even states
with small populations can benefit enormously with the right
policies. The authors' detailed exposition evaluates the
impact state and local government policies have on a state's
relative performance and economic growth overall, backed up with
economic data and analysis.
Facts don't lie. But they do point clearly to the failure
of so-called progressive tax schemes designed more to curry favor
with selected constituencies than to create an economic system that
leads to individual wealth as the reward for hard work and
entrepreneurial risk taking. An Inquiry into the Nature and
Causes of the Wealth of States is a detailed and critical look
at income taxation across the nation, and drills down into an
analysis of the economic growth or malaise that results from tax
policy. Arguing eloquently that a state cannot tax itself into
prosperity, just as the impoverished cannot spend themselves into
wealth, the authors point out what many inherently know but often
fear to say out loud. The book provides detailed quantitative
analysis, and discusses the policy variables that can have enormous
effects on the financial well-being of states and individual
residents, such as:
* Personal and corporate income tax rates
* Total tax burden as a percentage of personal income
* Estate and inheritance taxes
* Right-to-work laws
An Inquiry into the Nature and Causes of the Wealth of
States shows everyone how to evaluate state-level fiscal and
economic policies to become more competitive.
Autorentext
ARTHUR B. LAFFER, PhD, is the founder and chairman of Laffer Associates, an economic research firm focusing on interconnecting macroeconomic, political, and demographic changes.
STEPHEN MOORE is chief economist at The Heritage Foundation. He focuses on budget, tax, and monetary policy.
REX A. SINQUEFIELD was a co-founder and director of Dimensional Fund Advisors LP. Since retirement, he has become one of Missouri's leading philanthropists and a dedicated supporter of public policy change.
TRAVIS H. BROWN is the CEO and co-founder of Pelopidas, LLC, a public affairs and issue-advocacy firm. He frequently contributes to Fox & Friends and Forbes.com and is the author of How Money Walks.
Zusammenfassung
A passionate, detailed, quantified argument for state-level tax reform
An Inquiry into the Nature and Causes of the Wealth of States explains why eliminating or lowering tax burdens at the state level leads to economic growth and wealth creation. A passionate argument for tax reform, the book shows that even states with small populations can benefit enormously with the right policies. The authors' detailed exposition evaluates the impact state and local government policies have on a state's relative performance and economic growth overall, backed up with economic data and analysis.
Facts don't lie. But they do point clearly to the failure of so-called progressive tax schemes designed more to curry favor with selected constituencies than to create an economic system that leads to individual wealth as the reward for hard work and entrepreneurial risk taking. An Inquiry into the Nature and Causes of the Wealth of States is a detailed and critical look at income taxation across the nation, and drills down into an analysis of the economic growth or malaise that results from tax policy. Arguing eloquently that a state cannot tax itself into prosperity, just as the impoverished cannot spend themselves into wealth, the authors point out what many inherently know but often fear to say out loud. The book provides detailed quantitative analysis, and discusses the policy variables that can have enormous effects on the financial well-being of states and individual residents, such as:
- Personal and corporate income tax rates
- Total tax burden as a percentage of personal income
- Estate and inheritance taxes
- Right-to-work laws
An Inquiry into the Nature and Causes of the Wealth of States shows everyone how to evaluate state-level fiscal and economic policies to become more competitive.
Inhalt
Prologue xiii
Chapter 1 The Fall from Grace: The Story of States 11 and the Income Tax Adopted 1
The Implementation of an Income TaxA Terrible Mistake 1
That Giant Sucking Sound Is People, Output, and Tax Revenue Fleeing Income Taxes 4
Economic Malaise 4
Misleading Measures 5
Ohio 7
The Story of New JerseyA Colorful Example of Opportunity Wasted 10
Lower Tax Revenue 10
The Rhetoric Surrounding Tax Revenue and the Decline in Public Services 11
The Case of the Disappearing Tax Revenue 12
Connecticut 13
No Bang for the BuckHow Costly Tax Increases Fail to Result in Better Provision of Public Services 16
Chapter 2 Economic Metrics 23
Primary Economic Metrics 24
Tax Revenue Performance of All States over the Past Decade 32
The ALEC-Laffer State Rankings 37
Internal Revenue Service Tax Migration Data 39
Chapter 3 The Nine Members of the Fellowship of the Ring to Balance Out the Nine Nazgûl 53
An Analysis of the Top Personal Income Tax (PIT) Rates 56
Public Services and the Personal Income Tax 61
The Effects of Oil and Severance Taxes 63
A Longer-Term View of the Data 67
An Analysis of Corporate Income Taxes 69
An Analysis of the Overall Tax Burden 73
An Analysis of the ALEC-Laffer State Economic Competitiveness Index 76
Chapter 4 Piling On 81
An Analysis of the Property Tax Burden 82
An Analysis of the Sales Tax Burden 82
Estate and Inheritance Taxes 88
Right-to-Work Laws 90
Labor Force Unionization 93
State Minimum Wages 96
Chapter 5 Give unto Caesar 99
New HampshireCase in Point 104
Top Traders 121
Real-Time Mobility Index 127
Chapter 6 Why Growth Rates Differ: An Econometric Analysis of the Data 133
List of Variables 137
Gross State Product Growth: Single-Variable Analysis 141
Gross State Product Growth: Two-Variable Analysis 146
Gross State Product Growth: Three-Variable Analysis 149
Population Growth: Single-Variable Analysis 150
Population Growth: Two-Variable Analysis 153
Population Growth: Three-Variable Analysis 156
Population Growth: Four-Variable Analysis 157
Conclusions 158
Annotated Econometric Bibliography 159
Key Quotes from Econometric Bibliography 186
Chapter 7 Fiscal Parasitic Leakages: Texas versus California 193
A Tale of Two StatesA 55-Point Summary 194
The November 2012 Elections in California and Texas 199
Economic Performance: California, Texas, and the United States 201
A Brief Note on Poverty Metrics 207
The Texas Oil Boom and California's Oil Bust: A Clash of Economic Cultures 208
An Overview of Total State and Local Government RevenuesTexas and California 212
Texas, California, and the United States: A Comparison of Tax Revenue and Debt Financing 213
Policy Variables Affecting Growth 218
The Relationship among Taxation, Spending, and the Achievement of Policy ObjectivesA Story of Parasitic Leakages 224
Intergovernmental Revenues, Federally Mandated Social Services, and State W…