{"product_id":"an-inquiry-into-the-nature-and-causes-of-the-wealth-of-states-isbn-9781118921227","title":"An Inquiry into the Nature and Causes of the Wealth of States","description":"\u003cp\u003e\u003cb\u003eA passionate, detailed, quantified argument for state-level tax reform\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003e\u003ci\u003eAn Inquiry into the Nature and Causes of the Wealth of States\u003c\/i\u003e 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.\u003c\/p\u003e \u003cp\u003eFacts 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. \u003ci\u003eAn Inquiry into the Nature and Causes of the Wealth of States\u003c\/i\u003e 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:\u003c\/p\u003e \u003cul\u003e \u003cli\u003ePersonal and corporate income tax rates\u003c\/li\u003e \u003cli\u003eTotal tax burden as a percentage of personal income\u003c\/li\u003e \u003cli\u003eEstate and inheritance taxes\u003c\/li\u003e \u003cli\u003eRight-to-work laws\u003c\/li\u003e \u003c\/ul\u003e \u003cp\u003e\u003ci\u003eAn Inquiry into the Nature and Causes of the Wealth of States\u003c\/i\u003e shows everyone how to evaluate state-level fiscal and economic policies to become more competitive.\u003c\/p\u003e \u003cp\u003ePrologue xiii\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 1 The Fall from Grace: The Story of States 11 and the Income Tax Adopted 1\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eThe Implementation of an Income Tax—A Terrible Mistake 1\u003c\/p\u003e \u003cp\u003eThat Giant Sucking Sound Is People, Output, and Tax Revenue Fleeing Income Taxes 4\u003c\/p\u003e \u003cp\u003eEconomic Malaise 4\u003c\/p\u003e \u003cp\u003eMisleading Measures 5\u003c\/p\u003e \u003cp\u003eOhio 7\u003c\/p\u003e \u003cp\u003eThe Story of New Jersey—A Colorful Example of Opportunity Wasted 10\u003c\/p\u003e \u003cp\u003eLower Tax Revenue 10\u003c\/p\u003e \u003cp\u003eThe Rhetoric Surrounding Tax Revenue and the Decline in Public Services 11\u003c\/p\u003e \u003cp\u003eThe Case of the Disappearing Tax Revenue 12\u003c\/p\u003e \u003cp\u003eConnecticut 13\u003c\/p\u003e \u003cp\u003eNo Bang for the Buck—How Costly Tax Increases Fail to Result in Better Provision of Public Services 16\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 2 Economic Metrics 23\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003ePrimary Economic Metrics 24\u003c\/p\u003e \u003cp\u003eTax Revenue Performance of All States over the Past Decade 32\u003c\/p\u003e \u003cp\u003eThe ALEC-Laffer State Rankings 37\u003c\/p\u003e \u003cp\u003eInternal Revenue Service Tax Migration Data 39\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 3 The Nine Members of the Fellowship of the Ring to Balance Out the Nine Nazgûl 53\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAn Analysis of the Top Personal Income Tax (PIT) Rates 56\u003c\/p\u003e \u003cp\u003ePublic Services and the Personal Income Tax 61\u003c\/p\u003e \u003cp\u003eThe Effects of Oil and Severance Taxes 63\u003c\/p\u003e \u003cp\u003eA Longer-Term View of the Data 67\u003c\/p\u003e \u003cp\u003eAn Analysis of Corporate Income Taxes 69\u003c\/p\u003e \u003cp\u003eAn Analysis of the Overall Tax Burden 73\u003c\/p\u003e \u003cp\u003eAn Analysis of the ALEC-Laffer State Economic Competitiveness Index 76\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 4 Piling On 81\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eAn Analysis of the Property Tax Burden 82\u003c\/p\u003e \u003cp\u003eAn Analysis of the Sales Tax Burden 82\u003c\/p\u003e \u003cp\u003eEstate and Inheritance Taxes 88\u003c\/p\u003e \u003cp\u003eRight-to-Work Laws 90\u003c\/p\u003e \u003cp\u003eLabor Force Unionization 93\u003c\/p\u003e \u003cp\u003eState Minimum Wages 96\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 5 Give unto Caesar 99\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eNew Hampshire—Case in Point 104\u003c\/p\u003e \u003cp\u003eTop Traders 121\u003c\/p\u003e \u003cp\u003eReal-Time Mobility Index 127\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 6 Why Growth Rates Differ: An Econometric Analysis of the Data 133\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eList of Variables 137\u003c\/p\u003e \u003cp\u003eGross State Product Growth: Single-Variable Analysis 141\u003c\/p\u003e \u003cp\u003eGross State Product Growth: Two-Variable Analysis 146\u003c\/p\u003e \u003cp\u003eGross State Product Growth: Three-Variable Analysis 149\u003c\/p\u003e \u003cp\u003ePopulation Growth: Single-Variable Analysis 150\u003c\/p\u003e \u003cp\u003ePopulation Growth: Two-Variable Analysis 153\u003c\/p\u003e \u003cp\u003ePopulation Growth: Three-Variable Analysis 156\u003c\/p\u003e \u003cp\u003ePopulation Growth: Four-Variable Analysis 157\u003c\/p\u003e \u003cp\u003eConclusions 158\u003c\/p\u003e \u003cp\u003eAnnotated Econometric Bibliography 159\u003c\/p\u003e \u003cp\u003eKey Quotes from Econometric Bibliography 186\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 7 Fiscal Parasitic Leakages: Texas versus California 193\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eA Tale of Two States—A 55-Point Summary 194\u003c\/p\u003e \u003cp\u003eThe November 2012 Elections in California and Texas 199\u003c\/p\u003e \u003cp\u003eEconomic Performance: California, Texas, and the United States 201\u003c\/p\u003e \u003cp\u003eA Brief Note on Poverty Metrics 207\u003c\/p\u003e \u003cp\u003eThe Texas Oil Boom and California’s Oil Bust: A Clash of Economic Cultures 208\u003c\/p\u003e \u003cp\u003eAn Overview of Total State and Local Government Revenues—Texas and California 212\u003c\/p\u003e \u003cp\u003eTexas, California, and the United States: A Comparison of Tax Revenue and Debt Financing 213\u003c\/p\u003e \u003cp\u003ePolicy Variables Affecting Growth 218\u003c\/p\u003e \u003cp\u003eThe Relationship among Taxation, Spending, and the Achievement of Policy Objectives—A Story of Parasitic Leakages 224\u003c\/p\u003e \u003cp\u003eIntergovernmental Revenues, Federally Mandated Social Services, and State Welfare, Medicaid, and Food Stamp Programs 225\u003c\/p\u003e \u003cp\u003eThe Provision of Public Services by State and Local Governments 229\u003c\/p\u003e \u003cp\u003eThe Performance of State and Local Public Education 235\u003c\/p\u003e \u003cp\u003eHighways: California versus Texas 239\u003c\/p\u003e \u003cp\u003ePrisons: California and Texas 241\u003c\/p\u003e \u003cp\u003eConclusion 242\u003c\/p\u003e \u003cp\u003e\u003cb\u003eChapter 8 Au Contraire, Mon Frère: Criticisms of Our Work— Our Responses 245\u003c\/b\u003e\u003c\/p\u003e \u003cp\u003eConflicts of Interest and Policies 245\u003c\/p\u003e \u003cp\u003eTaxes and Other Supply-Side Policy Variables Don’t Affect Population and Gross State Product Growth 247\u003c\/p\u003e \u003cp\u003eGrowth Is a Move from North to South, from Clouds to Sunshine, from Cold to Warm 251\u003c\/p\u003e \u003cp\u003eGrowth Is Predominantly a Matter of Education and Not Taxes and Other Economic Policy Measures 252\u003c\/p\u003e \u003cp\u003ePersonal Income per Capita and Median Income Growth as Measures of Success Show Taxes Don’t Matter 253\u003c\/p\u003e \u003cp\u003eTax Rate Cuts Are Public Service Cuts 257\u003c\/p\u003e \u003cp\u003eOther Factors Affect Population Growth (Oil, Sunshine, Accessible Suburbs, Etc.), and Therefore Taxes, Right-to-Work Laws, and Other Supply-Side Variables Don’t 259\u003c\/p\u003e \u003cp\u003eCorrelations between Tax Rates and Growth Reflect a Simultaneous Equation Bias (Reverse Causation); That Is, Growth Causes Tax Cuts, Not the Reverse 261\u003c\/p\u003e \u003cp\u003eThere Are High-Tax States That Outperform Low-Tax States; Therefore the Supply-Side Theory Is Wrong 264\u003c\/p\u003e \u003cp\u003eThe Oklahoma Argument against Tax Cuts 267\u003c\/p\u003e \u003cp\u003eIncome Distribution Becomes More Even with Progressive High-Rate Tax Codes 270\u003c\/p\u003e \u003cp\u003eThe Probity of the ALEC-Laffer Measures Is Nonexistent; Therefore Their Policy Prescriptions Are Wrong 273\u003c\/p\u003e \u003cp\u003eFederal Tax Rates Are More Important Than State Tax Rates, and Therefore State Tax Rates Don’t Matter 275\u003c\/p\u003e \u003cp\u003eThe Wealthy Used Public Resources, and They—Not Others—Should Pay for Those Public Resources; We Need More Progressive Taxes, Not Less 276\u003c\/p\u003e \u003cp\u003eWhen Is Enough Evidence Enough? If the Facts Were Reversed, We Would Concede 277\u003c\/p\u003e \u003cp\u003eNotes 281\u003c\/p\u003e \u003cp\u003eBibliography 295\u003c\/p\u003e \u003cp\u003eAcknowledgments 317\u003c\/p\u003e \u003cp\u003eAbout the Authors 319\u003c\/p\u003e \u003cp\u003eIndex 321\u003c\/p\u003e \u003cp\u003e\u003cb\u003eARTHUR B. LAFFER, PhD,\u003c\/b\u003e is the founder and chairman of Laffer Associates, an economic research firm focusing on interconnecting macroeconomic, political, and demographic changes. \u003c\/p\u003e \u003cp\u003e\u003cb\u003eSTEPHEN MOORE\u003c\/b\u003e is chief economist at The Heritage Foundation. He focuses on budget, tax, and monetary policy.  \u003c\/p\u003e\u003cp\u003e\u003cb\u003eREX A. SINQUEFIELD\u003c\/b\u003e 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.  \u003c\/p\u003e\u003cp\u003e\u003cb\u003eTRAVIS H. BROWN\u003c\/b\u003e is the CEO and co-founder of Pelopidas, LLC, a public affairs and issue-advocacy firm. He frequently contributes to \u003ci\u003eFox \u0026amp; Friends\u003c\/i\u003e and Forbes.com and is the author of \u003ci\u003eHow Money Walks.\u003c\/i\u003e  \u003c\/p\u003e\u003cp\u003ePOOR PEOPLE CAN’T SPEND themselves into wealth. Similarly, as huge segments of the population have long suspected, a higher tax burden doesn’t lead to prosperity at the state level. Seems simple enough to many, but this little piece of wisdom has been the subject of loud debate. \u003ci\u003eAn Inquiry into the Nature and Causes of the Wealth of States\u003c\/i\u003e is putting that debate to rest with a cogently presented, meticulous analysis of the facts. \u003c\/p\u003e \u003cp\u003e By looking at quantitative data from all 50 U.S. states, the authors have put together a solid case for lower state income taxes and decreased tax burdens. Wealth doesn’t stay put. Businesses and individuals in upper economic strata go where their interests are protected. The result? As this book demonstrates, almost every measure of economic prosperity at the state level—population, employment, and beyond—is linked to taxation. Low-tax states in every region of the country are outperforming their neighbors.  \u003c\/p\u003e\u003cp\u003e In all kinds of economic weather, states need to become competitive or risk urban dilapidation, population shrinkage, decreases in quality of living, and worse. In \u003ci\u003eAn Inquiry into the Nature and Causes of the Wealth of States\u003c\/i\u003e, lucid quantitative analysis supports the argument that wealth-friendly policies at state and local levels are the key to maintaining prosperity for everyone. These policies extend far beyond the personal income tax rate to include corporate income taxes, estate taxes, the overall tax burden, right-to-work laws, and much more. Add it all up, and states won’t be able to ignore this airtight case for tax reform.    \u003c\/p\u003e\u003cp\u003e\"This is a book full of evidence, compelling in the way it reveals differences among states and clear consequences. Read, learn, and weep in some constituencies or give three cheers in others.\"\u003cbr\u003e —\u003cb\u003eGeorge Shultz\u003c\/b\u003e, distinguished fellow at the Hoover Institution at Stanford University, former United States Secretary of Labor, Secretary of the Treasury, Secretary of State, Director of the Office of Management and Budget and professor of economics at MIT and the University of Chicago\u003cbr\u003e \u003cbr\u003e \"Left wing, right wing, liberal, conservative, Democrat or Republican, Arthur Laffer's book, \u003ci\u003eThe Wealth of States\u003c\/i\u003e has the facts and the framework for policymakers and citizens alike. Tapping decades of research and experience in state economics, Laffer, Moore, Sinquefield and Brown communicate clearly the guiding principles to elevate their states-and thus the nation as a whole-to levels of prosperity never before seen.  State and local legislators should base their economic policies on this book-it's a game changer.\"\u003cbr\u003e —\u003cb\u003eDick Cheney\u003c\/b\u003e, 46th Vice President of the United States, former Secretary of Defense, member of the U.S. House of Representatives representing Wyoming and Chairman and CEO of Halliburton Company\u003cbr\u003e \u003cbr\u003e \"Wow! This compelling, comprehensive book will be the bible for state and local leaders who truly want rapid economic growth. It will profoundly, positively change politics and economics in America.\"\u003cbr\u003e —\u003cb\u003eSteve Forbes\u003c\/b\u003e, Chairman and Editor-in-Chief of Forbes Media\u003cbr\u003e \u003cbr\u003e \"Arthur Laffer is justly known as the father of Supply Side Economics whose pro-growth tax cuts combined with Reagan's policies of limited government, free enterprise and strong defense ushered in a twenty five year economic renaissance.  He is not as well known for his work on the States, but this book will change that.  With Stephen Moore, Rex Sinquefield and Travis Brown, Laffer uses the marvelous laboratory of the fifty States-set in the environment of free trade, population mobility and a common underlying federal structure-to demonstrate conclusively that economic policy matters. Where taxes are low, private property rights are strong and free enterprise prevails, prosperity grows.  High taxes, big government and special interest domination may work politically to win elections, but they fail to bring home the bacon. Prosperity is not an accident or a fate, it is a choice-a freedom choice.\"\u003cbr\u003e —\u003cb\u003ePhil Gramm\u003c\/b\u003e, former U.S. Representative and Senator representing Texas and professor of economics at Texas A\u0026amp;M University\u003cbr\u003e \u003cbr\u003e \"Arthur Laffer's latest book on the states makes it clear that running a state is a lot like running a business. The goals are the same:  making our businesses and states more prosperous, competitive, and attractive to investors and citizens.  With important lessons identified, \u003ci\u003eThe Wealth of States\u003c\/i\u003e will make its mark.\"\u003cbr\u003e —\u003cb\u003eJack Welch\u003c\/b\u003e, Chairman and CEO of General Electric, 1981-2001\u003cbr\u003e \u003cbr\u003e “The widening gap in policies and prosperity among the states has been a source of increasing controversy. The migration of people and businesses from high-tax states such as California and Illinois to fast-rising rivals Texas, Nevada, and Florida is creating a divide that, to some observers, mirrors the battle between emerging markets and aging economies in decline. . . . An important new book identifies a major factor that, the authors claim, separates the winners from the laggards: state income taxes . . . . Given the authors' pedigree, the conclusions are predictable: Imposing income taxes inevitably leads to economic decline and enriches the competing states that don't have them. What gives their arguments credence is the staggering wealth of data summoned to support their claims.”\u003cbr\u003e —\u003cb\u003eShawn Tully\u003c\/b\u003e, senior editor-at-large, \u003ci\u003eFortune,\u003c\/i\u003e April 18, 2014.\u003cbr\u003e \u003cbr\u003e “For the economist, the relocation decision offers a fascinating insight into the differences between attractive and repellent environments. If every state were exactly the same—same economy, same laws, same weather—the relocation decision wouldn’t tell us anything of interest. People would still move, but there wouldn’t be any discernible trends. We’d see the same number of people moving from Cuba to Florida as vice versa. But what if people systematically prefer one kind of jurisdiction over another when they move? . . . as a partial explanation for relocation decisions it’s a fascinating insight, one that informs an important new book by Arthur Laffer, Stephen Moore, Rex Sinquefield, and Travis Brown, \u003ci\u003eAn Inquiry Into the Nature and Causes of the Wealth of States\u003c\/i\u003e. The title, borrowed from Adam Smith’s \u003ci\u003eWealth of Nations\u003c\/i\u003e, promises a revolutionary reinterpretation of what makes American states wealthy and, remarkably, the authors deliver on their promise. What they find, in brief, is that low-tax states deliver more wealth without sacrificing the social services that tax revenues are supposed to fund. They also find that people move in massive numbers from high- to low-tax states.”\u003cbr\u003e —\u003cb\u003eF.H. Buckley\u003c\/b\u003e, \u003ci\u003eThe American Spectator\u003c\/i\u003e, May 14, 2014\u003c\/p\u003e","brand":"Wiley","offers":[{"title":"Default Title","offer_id":47988723024101,"sku":"NP9781118921227","price":32.0,"currency_code":"USD","in_stock":false}],"thumbnail_url":"\/\/cdn.shopify.com\/s\/files\/1\/1842\/7735\/files\/9781118921227.jpg?v=1761781334","url":"https:\/\/k12savings.com\/es\/products\/an-inquiry-into-the-nature-and-causes-of-the-wealth-of-states-isbn-9781118921227","provider":"K12savings","version":"1.0","type":"link"}