Laffer and Moore: The Red-State Path to Prosperity

Wall Street Journal ^ | 03/28/2013 | Art Laffer and Stephen Moore

[SeekAndFind]

You can tell a lot about prosperity in America by observing the places people are moving to and where they are packing up and moving from. New Census Bureau data on metropolitan areas indicate that the South and the Sunbelt regions continue to grow, while the Northeast and Midwest continue to shrink.

Among the 10 fastest-growing metro areas last year were Raleigh, Austin, Las Vegas, Orlando, Charlotte, Phoenix, Houston, San Antonio and Dallas. All of these are in low-tax, business-friendly red states. Blue-state areas such as Cleveland, Detroit, Buffalo, Providence and Rochester were among the biggest population losers.

This migration isn't accidental. Workers and business owners are responding to clear economic incentives. Red states in the Southeast and Sunbelt are following the Reagan model by reducing tax rates and easing regulations. They also offer right-to-work laws as an enticement for businesses to come and set up shop. Meanwhile, the blue states of the Northeast, joined by California, Minnesota and Illinois, are implementing the Obama model of raising taxes on businesses and the wealthy to fund government "investments" and union power.

The contrast sets up a wonderful natural laboratory to test rival economic ideas.

Consider the South. We predict that within a decade five or six states in Dixie could entirely eliminate their income taxes. This would mean that the region stretching from Florida through Texas and Louisiana could become a vast state income-tax free zone.

Three of these states—Florida, Texas and Tennessee—already impose no income tax. Louisiana and North Carolina, both with bold Republican governors and legislatures, are moving quickly ahead with plans to eliminate theirs. Just to the west, Kansas and Oklahoma are also devising plans to replace their income taxes with more growth-friendly expanded sales taxes and energy extraction taxes.

[cripplecreek]

Michigan’s RTW law officially came into effect today.

[Venturer]

I have spent my whole life in Maryland and I love the State, but it’s Democrat political persuasion and tax burden has me looking elsewhere, and that elsewhere will be to a State with less taxes and less gun laws.And less diversity.

[tgusa]

“Louisiana and North Carolina, both with bold Republican governors and legislatures, are moving quickly ahead with plans to eliminate theirs.”

Unfortunately for Virginia, the parasites in Richmond and Arlington would never stand for eliminating the state income tax. I only live 10 miles from the NC line now - might be time to move.

[The people have spoken]

At best Nevada is a purple state. It elected Obama and Harry Reid.

[Cringing Negativism Network]

Now if Michigan could un-legislate handgun registration, they would have a huge winner.

(unless they already did when I wasn’t looking?)

[SeekAndFind]

RE: Now if Michigan could un-legislate handgun registration, they would have a huge winner.

They can’t have a winner as long as Detroit is part of the state.

[yadent]

Clark County(Vegas) and to a lesser extent Washoe County(Reno). They have been Californicated.

[ridesthemiles]

Don’t know where this author got their information!!!

Las Vegas is NOT in a RED state!!!

Democrats outnumber Republicans about 4 to 5++ here in Nevada.

The State legislature is Democrat controlled. The Governor is Republican, but the Dems are trying to get income tax passed in this year’s session. If they do that, I can guarantee companies will move out of this state.

The ‘growth’ thought to be happening in Las Vegas is mostly due to the constant & chronic influx of more and more and more ILLEGALS who work in the entertainment industry behind the scenes. They are the wonderful people that ACORN uses to pump up the Democrat registrations, also.

Nevada has just lost it’s number ONE position of unemployment-—now we are number 2!!! Still have the most houses vacant & in foreclosure.