Comment: How stupid do you have to be?

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How stupid do you have to be?

How stupid do you have to be? And you are quoting Archie Bunker?

Correlation does not equal causation, first of all. And one data point is not a correlation. For example, Mass. has lower unemployment than Texas with twice the taxes. Hell, North Dakota has 3% unemployment with one of the higest tax rates in the nation.

Another example, historically California has had high taxes (as you say) and fantastic employment...similar if not better than the unemployment in Texas.

You piqued my interest, so I did the following study.

The correlation between tax revenue and unemployment is practically zero...meaning that there is no correlation. Here is the data. This is total revenue (state AND local) - insurance income and federal contributions, for 2010.:

State Unemployment % Tax Revenue to GDP
Alabama 8.3 15.9%
North Dakota 3 23.3%
Nebraska 3.9 13.2%
South Dakota 4.4 14.5%
Iowa 5.2 14.9%
Oklahoma 5.2 13.7%
Utah 5.4 12.2%
Vermont 5.4 10.8%
Wyoming 5.4 16.0%
Hawaii 5.7 12.5%
New Hampshire 5.7 16.3%
Minnesota 5.8 13.4%
Kansas 5.9 12.0%
Virginia 5.9 14.1%
Montana 6.1 14.3%
New Mexico 6.4 15.2%
Massachusetts 6.5 14.2%
Delaware 6.8 11.8%
Texas 6.8 15.7%
Maryland 6.9 13.1%
Missouri 6.9 13.4%
Louisiana 7 15.9%
Ohio 7 13.9%
Arkansas 7.1 16.9%
Idaho 7.1 12.6%
Wisconsin 7.3 15.2%
Alaska 7.5 16.5%
Maine 7.6 12.3%
West Virginia 7.6 12.9%
Colorado 8 14.5%
Arizona 8.2 15.0%
Indiana 8.2 17.3%
Pennsylvania 8.2 12.9%
Tennessee 8.3 14.5%
Kentucky 8.4 14.6%
Washington 8.5 14.0%
Florida 8.7 15.9%
Oregon 8.7 14.3%
Illinois 8.8 14.4%
Connecticut 8.9 17.8%
New York 8.9 11.3%
Georgia 9 14.4%
South Carolina 9.1 11.5%
Mississippi 9.2 13.6%
Michigan 9.3 17.4%
North Carolina 9.6 12.0%
New Jersey 9.8 14.1%
California 10.2 16.6%
Rhode Island 10.5 14.9%
Nevada 11.8 17.0%

If you just look at state revenue, you get a very mildly negative correlation, which implies that as revenues go up, unemployment goes down. However, just looking at state revenue ignores the potential damage of local taxations on the state.

Plan for eliminating the national debt in 10-20 years:

Overview: http://rolexian.wordpress.com/2010/09/12/my-plan-for-reducin...

Specific cuts; defense spending: http://rolexian.wordpress.com/2011/01/03/more-detailed-look-a