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Politics : Formerly About Advanced Micro Devices
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To: combjelly who wrote (372296)2/28/2008 1:34:26 PM
From: TimF  Read Replies (1) of 1577097
 
Not the way you are using it. It is only a dead weight loss if the costs of the taxes exceeds whatever benefit is realized from it.

The direct benefits from the taxation are zero.

Spending, can have net benefits, or be a net negative even if you didn't have to tax to get the spending. Most of the government payments are simply transfers (which don't create wealth, and only use up a small amount of wealth to transfer a much larger amount, the main loss here is the dead weight loss from the taxation)

How did they get those things?

Some of them are natural advantages, some of them are left over historical advantages, certain industries developed in different places, and have a certain tendency to stay there if its not too disadvantageous to do so. A lot of its is purely private capital. I'm not saying that government built infrastructure plays a role, but its only one part of many, and you don't need all the taxes (and esp. regulation) that many of the high tax states impose, in order to have a relatively high level of government built infrastructure.

A poor state has never gotten rich by cutting taxes and reducing services.

A rich state has never gotten rich from increasing taxes. And much of the spending either goes to things other than those that provide real competitive advantage, and/or is spent inefficiently.

Poor states tended to have low taxes because they couldn't afford the damage to the economy that high taxes would cause.
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