Tom Patterson

The Elephant in the Room

Posted on November 29, 2006 | Author: Tom Patterson
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Democrats nationwide have promised to fulfill their mandate for change by prudent fiscal management and looking out for the middle class. Its time to get down to business.

In Arizona, Gov. Janet Napolitano seems disinclined toward more broad-based tax reductions even though she touted the tax cuts of her first term during the campaign.

But theres reason for the governor to get on board with tax reductions if she wants to move Arizona forward. Evidence continues to mount that states with low personal and corporate income taxes are the healthiest economically.

Two new studies from the Tax Foundation and the Maine Heritage Policy Center drive the point home. The Maine study showed the ten states with the lowest taxes between 1994 and 2004 experienced 32 percent higher personal income growth and 79 percent higher employment growth than the ten states with the highest tax burden.

The Tax Foundation compared the data among states from 2000-05 and found personal income growth was 44 percent higher in the 10 states with the best business tax climate compared to the 10 worst. The evidence is overwhelming that low taxes are a key component of economic growth.

During this recent election, Democrats scoffed at their tax-and-spend reputation and insisted they could manage the economy better than profligate Republicans. Well be watching.

Tom Patterson is Chairman of the Goldwater Institute, a retired emergency room physician, and former state senator.

Key Links:

-Tax Foundation
-Maine Heritage Policy Center

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