Lower Taxes + Higher Growth = More Tax Revenue

Perhaps more people in the MSM and DNC ought to sit down with Nevada Governor Bill Richardson, who apparently understands the simple equation above:

Nevada’s simplified tax code, however, is a proven job-producing winner. Nevada’s labor market has been so strong in recent decades that the “metropolitan statistical areas” (MSAs) of Las Vegas and Reno have actually recorded net new jobs in periods of recession. Employment typically declines when the economy contracts, yet jobs were added in Las Vegas during the recessions of 1980 and 1990-91, and in Reno during the 2001 recession. Only a small percentage of MSAs nationwide record employment growth during recessions.

A veritable job-creation machine has existed in No Tax Nevada for a long time. Nevada’s economic growth rate of 12 percent has led all 50 states since the last recession ended in 2001. Only one state — Florida — recorded more new jobs (379,000) than Nevada (124,000) in the period. Nevada also led the U.S. in job creation (68 percent) in the record 10-year expansion of 1991 to 2001.

Are tax rates a factor in job growth and economic development? Yes, indeed. Nevada’s yet another case in point.

Forget Dean, Kerry, and Hillary in 2008. The man to watch is Bill Richardson, who if he isn't bought off by the Clintons, will come to the table with a proven formula for high-growth government.

The dirty little secret of American politics is that solid increases in economic growth combined with minor increases in the welfare state are an enormous winner. If the Democrats follow Richardson's lead, stop static scoring, and cut taxes, we'll be in big trouble on the Right.