No, not the Civil War, but the economic war between Virginia and Massachusetts. It seems that both are wooing Hollywood to become major centers of film production. In order to win over the Hollywood producers and directors, each state has fought by cutting taxes and giving other incentives to entice the movie moguls.

The reason they do this is simple: Someone with a little time on their hands decided to tabulate exactly how much money the extra movie business brought in to the states' economies for every dollar of tax incentives. It seems that the payoff is quite handsome even by Las Vegas standards: fourteen to one odds. That is, fourteen dollars flow into the states' economies for each dollar in tax cuts.

Note this clear, concrete example of tax cuts in action! Cut taxes and government revenue INCREASES!

Now it is obvious that legislators understand that the Laffer Curve is real. Otherwise, they wouldn't be cutting taxes to generate state revenue. But why do they pretend to believe the exact opposite occurs when dealing with ordinary citizens and corporations outside the movie business? Hasn't Michigan demonstrated that raising taxes drives out business and depletes the state government's coffers? Hasn't California's policies shown the same thing?

If taxes are cut, more businesses flock to the low tax state, the state's economy enjoys a relative boom, and thus more state revenue occurs. This applies just as well to a Mom-Pop grocery store or to a defense contractor or an air conditioning service agent as it does to Hollywood moviemakers.

Never cheer when your politicians promise to "raise taxes on the rich." The trickle-down effect will be taking money from your wallet just as surely.

If cutting taxes on the wealthy Hollywood elites is good business for the state, surely cutting taxes on other businesses makes just as much sense. Dispute it!