Mr. Speaker, unlike the talk from the government, some American governors are promising jobs, jobs, but with a difference. The results are in. Business Week magazine says that states with low taxes clearly perform better than states with high taxes. Since 1985 job growth in low tax states has been 65 per cent higher than in high tax states.
There is a tradeoff however. Cutting taxes lowers the tax haul. The resultant faster growth still does not quite compensate for lost revenue and that is where the other necessary step comes in.
Politicians must also reinvent the delivery of services. That means privatization and deregulation to reduce the cost of social services. This is not ideology. It is the hard evidence of what works.