Friday, December 25, 2009

Tax Competition and Public Services : California vs. Texas

California taxpayers don’t get much bang for their bucks. While high taxes could be OK when public services are plentiful and high quality, California now exemplifies the new Big-Spending, High-Taxing, Lousy-Services Paradigm.

Read the William Voegli paper here .

My comment: one suspects that high taxes European countries follow or surpass the same Californian model. States’ real productivity has probably reached a phase of decreasing returns.

Hat tip to Tyler Cowen (Marginal Revolution).

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