Arthur Laffer published an opinion piece in the Wall Street Journal recently regarding a ballot initiative regarding taxes on the wealthy for the state of Washington. Mr. Laffer makes that case that states with high income taxes under preform when compared to states with no income tax. While I don't doubt his numbers he leaves out one very important measure. This is a raise in tax on the wealthy and any numbers regarding total income tax rates, which make up the sole basis for his analysis, become irrelevant. To assume a tax that only affects that top tax bracket will track equivalent to a tax that affects everyone in the state, is a huge leap and shows that Mr. Laffer had drawn his conclusion long before doing any research.
A quick look at the history of the top tax rates compared with the general economic well being suggest the exact opposite of Mr. Laffer's claims and indicate that his analysis is at best incomplete. In the end his conclusion may prove true but it will be in spite of his information gathering, not because of it.
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