Little is discussed in the policy world these days without it referencing job creation. Taxes are no different.

What does an ideal tax system look like? How many private sector jobs does it allow to be created? How are essential government services funded in such a system?

It shouldn't surprise too many people that the numbers are clear - lower taxes means more people working in the private sector. The key to keeping taxes low is keeping spending low...while delivery high-quality services. The evidence is obvious on taxes and jobs (here) and taxes and spending (here).

Just two days ago, this analysis found its ways into The Wall Street Journal in an op-ed by KPI's Dave Trabert and Todd Davidson.

States that Spend Less, Tax Less---and Grow More
By: Dave Trabert and Todd Davidson

In the midst of a dismal recovery where every job counts, one fact stands out: States that tax less achieve better economic performance. Conventional thinking (at least within government) says that low state taxes are dependent upon having access to unusual revenue sources, but that's not it. A state could be awash in oil and gas severance taxes and still have a high tax burden if the government will not exercise restraint...

Read the full commentary here.