Buy WILLisms

XML Feed

Featured Entries

The Babe Theory Of Political Movements.
Mar. 21, 2005 11:50 AM

Iran's Sham Election In Houston.
June 20, 2005 5:36 AM

Yes, Kanye, Bush Does Care.
Oct. 31, 2005 12:41 AM

Health Care vs. Wealth Care.
Nov. 23, 2005 3:28 PM

Americans Voting With Their Feet.
Nov. 30, 2005 1:33 PM

Idea Majorities Matter.
May 12, 2006 6:15 PM

Twilight Zone Economics.
Oct. 17, 2006 12:30 AM

The "Shrinking" Middle Class.
Dec. 13, 2006 1:01 PM

From Ashes, GOP Opportunities.
Dec. 18, 2006 6:37 PM

Battle Between Entitlements & Pork.
Dec. 21, 2006 12:31 PM

Let Economic Freedom Reign.
Dec. 22, 2006 10:22 PM

Biggest Health Care Moment In Decades.
July 25, 2007 4:32 PM

Unions Antithetical to Liberty.
May 28, 2008 11:12 PM

Right To Work States Rock.
June 9, 2008 12:25 PM



Blogroll Me!



July 2008
June 2008
May 2008
April 2008
March 2008
February 2008
January 2008
December 2007
November 2007
October 2007
September 2007
August 2007
July 2007
June 2007
May 2007
April 2007
March 2007
February 2007
January 2007
December 2006
November 2006
October 2006
September 2006
August 2006
July 2006
June 2006
May 2006
April 2006
March 2006
February 2006
January 2006
December 2005
November 2005
October 2005
September 2005
August 2005
July 2005
June 2005
May 2005
April 2005
March 2005
February 2005
January 2005
December 2004

Social Security Reform Thursday.
March 13, 2008

Caption Contest: Enter Today!
Due: July 29, 2008

The Carnival Of Classiness.
Mar. 14, 2006

Quotational Therapy: Obama.
Apr. 4, 2008

Mainstream Melee: Wolfowitz.
May 19, 2007

Pundit Roundtable: Leaks.
July 9, 2006

A WILLisms.com(ic), by Ken McCracken
July 14, 2006


Powered by Movable Type 3.17
Site Design by Sekimori

WILLisms.com June 2008 Book of the Month (certified classy):

The WILLisms.com Gift Shop: Support This Site


This Week's Carnival of Revolutions: carnivalbutton.gif

Carnival Home Base: homebase.gif


« Quotational Therapy: Part 106 -- The Fed Chair Wants Social Security Reform. | WILLisms.com | Twilight Zone Economics. »

Trivia Tidbit Of The Day: Part 355 -- Best & Worst States For Taxes.

Policies Matter-

If there's one thing you should take from reading this blog, it's that ideas matter. In domestic public policy, the fundamental difference between Democrats and Republicans is found on the issue of taxes. Democrats almost unanimously want higher taxes. Republicans, by and large, want lower taxes. These are idea differences that manifest themselves in public policy, and these manifestations can then be observed at the state-by-state level.

Indeed, state tax policy is not arbitrary, and it's not created equal.

The ten best states in the Tax Foundation’s 2007 State Business Tax Climate Index are as follows:

1. Wyoming
2. South Dakota
3. Alaska
4. Nevada
5. Florida
6. Texas
7. New Hampshire
8. Montana
9. Delaware
10. Oregon

The ten worst states in the Tax Foundation’s 2007 State Business Tax Climate Index are:

41. Minnesota
42. Maine
43. Iowa
44. Nebraska
45. California
46. Vermont
47. New York
48. New Jersey
49. Ohio
50. Rhode Island

The red/blue dichotomy (based on 2004 Bush/Kerry) is pretty clear, without a lot of explanation. To quibble with the color system, New Hampshire and Iowa are more purple than anything (NH went for Bush in 2000; Iowa went for Gore in 2000), while Nebraska's legislature is non-partisan and unicameral. One could probably examine state legislatures and governorships to create a better red/blue/purple dynamic, but that's for another post.

Ultimately, though, it's the ideas and policies-- and the differences between and among the states-- that matter.

These differences have produced very real outcomes:

...between 2000 and 2005, income in the top 10 states in the 2007 Index grew 44 percent faster than in the bottom 10 states. Employment in the top 10 states grew 115 percent faster, output 52 percent faster and population 164 percent faster.

Think about that. States with lower taxes performed better than states with higher taxes. People and businesses wanted to move to low tax states from high tax states. More jobs-- and more higher paying ones-- were created in the low tax states than in the high tax states. How "duh" is all of that?

What we're seeing here is fifty economic laboratories competing against one another. Policies, not surprisingly for those of us who favor good policies, make a difference in economic outcomes.

Good polices = good outcomes. Poor policies = poor outcomes.

Tax competition is good. Low taxes are the way to "win" that competition. Why more states-- especially struggling ones-- don't already grasp this, given the growing profusion of empirical evidence, is increasingly mindboggling.


Previous Trivia Tidbit: School Choice Is Worth A Try.

Posted by Will Franklin · 16 October 2006 03:53 PM


Why more states-- especially struggling ones-- don't already grasp this, given the growing profusion of empirical evidence, is increasingly mindboggling.

Tell me about it. I live in Ohio, and we're all prepared to elect a Democratic governor who will do nothing to make the state more tax-friendly, despite the fact that he pledges to "keep jobs in Ohio." Granted, the Republicans before him were no better, but I'm not sure the solution to Republicans who act like Democrats is to vote in Democrats. But that's what's going to happen. I'm guessing I won't be an Ohioan too much longer.

It all seems so obvious, and yet for some reason, neither party in Ohio gets it. Nor do the people for that matter. Frustrating.

Posted by: Jason at October 17, 2006 08:48 AM