LAS VEGAS–A ‚??parasitic leakage‚?Ě is occurring in America with the government assessing excessive tax revenues and squandering part of the money that it collects, said Art Laffer, a former economics advisor for President Reagan and the founder and chairman of Laffer Associates, an economic research and consulting firm.
Examples of these problems can be shown simply by comparing how states that are more fiscally responsible outperform those that tax-and-spend heavily, said Laffer, who previously taught economics as the University of Chicago and the University of Southern California. Two of the starkest instances of this divergence can be found by examining the economic ascent of Texas and the decline of California, he added today during his keynote address at the FreedomFest conference.
One dramatic case of tax leakage is the ‚??permitting process‚?Ě in Orange County, Calif., which requires the payment of $100,000 in fees to build a new house, Laffer said.
Significant waste occurs when the government tries to move money from revenue to spending in California, compared to Texas, Laffer said.
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Paul Dykewicz is a seasoned journalist who is the editorial director of the Financial Publications Group at Eagle Publishing and the editor of the Eagle Daily Investor website. He also edits five monthly investment newsletters, Forecasts & Strategies, Successful Investing, High Monthly Income, Alpha Investor Letter and PowerTrend Profits, as well as a number of time-sensitive trading services.