Just as ancient Rome taxed an empire to support its citizens' splendid lifestyle, state capitals and Washington redistribute income from other areas to their residents. The evidence comes from the greater wealth and higher pay of residents of capital cities compared to the rest of the country.

• The average annual pay of workers in Washington, D. C., is 48 percent higher than the national average.

• Per capita annual income in Washington was 43.6 percent higher than the national average in 1993 - up from 32.1 percent above the average in 1990 and 25.9 percent in 1980.

• Nationwide, income per person in counties with state capitals tends to be nearly 10 percent higher than in other regions.

• Per capita income in the capitals of the poorest states is about 17 percent above average incomes in those states.

Of course, capitals have a high proportion of government employees - who are paid more than private-sector workers. Civilian federal workers earn 26 percent more in wage income than private-sector workers. Add generous federal benefits, and federal workers receive total compensation that is more than 45 percent above the national average.

Employment opportunities are also greater in capitals. Unemployment in counties containing state capitals averages about 20 percent lower than in other counties. And in the Washington metropolitan area, unemployment was about 40 percent less than the national average from 1970 to 1990.

The population of the metropolitan areas surrounding capital cities is swelling. For example, the population in the Washington area grew at twice the national average from 1980 to 1990.

Source: Richard K. Vedder, "Capital Crimes: Political Centers as Parasite Economies," Policy Analysis No. 250, February 28, 1996, Cato Institute, 1000 Massachusetts Avenue, NW, Washington, DC 20001, (202) 842-0200.