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Rich States, Poor States should be required reading for governors, legislators, and those who serve them. Money is spent more efficiently by the private sector than by governments, so it is reasonable to expect that states with lower overall taxes have better economic environments than states with high taxes and more government spending. It is true that lowering taxes can be politically difficult: even fiscal conservatives start losing their enthusiasm for cutting taxes when special interest groups that consume a state’s tax dollars warn them that tax cuts will have dire consequences. But the consequences of being caught in a spiral of increased taxes and a decreasing rate of return on the tax base are much more dangerous. Arthur Laffer, Stephen Moore, and Jonathan Williams use a clear, concise format to expose the scare tactics of the tax-and-spend crowd and show how economic vitality follows lower taxes.

It is true that the policies of the federal government have a direct effect on the economic environment of the entire country, but governors and legislatures are not rudderless. We can and must start to change our country’s economic course by providing an environment that rewards our citizens for their efforts and their risks. The founders of our country understood that a republic with its multiple states was the perfect incubator for vetting competing approaches to public policies.

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