The Blue Tax



It is impossible to imagine that anybody who ever has witnessed the sausage-making in Albany, Sacramento, or Trenton would wish to subsidize the process with federal money.

States without income taxes tend to have more economic growth and better employment prospects than do states with high income taxes, though that fact should not be oversimplified, either: Texas’s economic advantages include such things as a liberal regulatory environment and a relatively sane legal climate (and, don’t tell the holier-than-thou libertarians, several very large state-run universities producing a steady supply of skilled workers).

We note that the Times is here endorsing a regressive subsidy, one that showers benefits on high earners in states that are often themselves higher in income than the national average. We wonder which other regressive policies the paper might endorse in the interests of the nice people in Greenwich and Millburn.

We have 50 different states for a reason: Texas can have its low taxes and economic growth, and Connecticut can have its high taxes and lavishly subsidized abortions. But there is no reason for the federal government to subsidize Connecticut’s high taxes — or Texas’s crony-capitalist “economic development” schemes. The tax code is not here to provide a national carrot and stick. It is here to raise money, which Congress and the New York Times believe the government needs more of, so long as it does not derail any gravy trains in Albany or Sacramento.