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Politics : Formerly About Advanced Micro Devices -- Ignore unavailable to you. Want to Upgrade?

To: TimF who wrote (372206)	2/27/2008 6:09:03 PM
From: combjelly	Read Replies (1) \| Respond to of 1577131

"Or maybe I should just act like you and ask you to quantify the exact amount that government created infrastructure contributes to the fact that some states are wealthier than others," Pomegranates and pineapples, Tim. You made the statement "Cutting taxes decreases the dead weight loss of compliance costs, and avoidance costs/distortions.". There is no evidence that this makes any significant difference at all. However, the observation can be made that high tax states tend to be wealthier than low tax states. Now, sometimes that can get skewed a bit if significant natural resources are a factor. Texas, for example, is wealthier than other states with a similar level of taxation. But, it is still a major producer of oil and gas, and the state has traditionally used much of those several fees(taxes) to fund education. Since those taxes generally aren't included in the tax category, it skews things a bit.