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The Adverse Consequences of High-Tax Welfare States

The Adverse Consequences of High-Tax Welfare States

by Dan Mitchell | Nov 21, 2025 | Blogs, Economics, Taxation

Honest leftists (the “Okunites“) generally acknowledge that laissez-faire policies deliver more growth, but they nonetheless favor high taxes and redistribution because they argue that social equality matters a lot. However, according to this chart, there’s...
Blue-to-Red Tax Migration, Part VI

Blue-to-Red Tax Migration, Part VI

by Dan Mitchell | Nov 12, 2025 | Blogs, Economics, States, Tax Competition, Taxation

I lied. Back in 2023, I wrote that Part V would be the last segment in my series on blue-to-red tax migration (with Parts I-IV available here, here, here, and here). But I’ve decided to extend the series because here’s a must-share map...
The Value-Added Tax: A Recipe for More Spending…and More Debt: Part II

The Value-Added Tax: A Recipe for More Spending…and More Debt: Part II

by Dan Mitchell | Nov 6, 2025 | Big Government, Blogs, Taxation, VAT

The case against the value-added tax (VAT) is not complicated. Simply stated, this hidden type of national sales tax was a key precursor for the expansion of the European welfare state. As you can see in the chart, the burden of government spending...
Learning the Wrong Lessons from Europe

Learning the Wrong Lessons from Europe

by Dan Mitchell | Nov 1, 2025 | Big Government, Blogs, Europe, Government Spending

Let’s look today at European fiscal policy. But instead of focusing on the immediate issue (the likelihood of another fiscal crisis), we’re going to investigate whether we can learn anything by looking at what’s happened in the past. My two cents, based...
STCI 2026: Winners and Losers in State Tax Policy

STCI 2026: Winners and Losers in State Tax Policy

by Dan Mitchell | Oct 30, 2025 | Blogs, Economics, States, Taxation

Keeping with tradition, let’s look at the results from the Tax Foundation’s annual Tax Competitiveness Index (as I did in 2025, 2024, 2023, 2022, etc, etc). Here’s a map showing how states are ranked. It’s good to be light green...
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