Supply-side skeptics need look no further than the states for evidence that tax cuts bring good things, according to Stephen Moore of the Cato Institute.

The governors of some 24 states have cut taxes in recent years, kept their budgets in the black, and jump-started their state economies at the same time.

Cato researchers compared the economic and fiscal results in 10 states which cut taxes with 10 which raised taxes.

• The tax-cutting states not only balanced their budgets but had much larger budget reserves in the 1990s.

• The tax-cutting states had average budget reserves of 7.1 percent of state expenditures -- compared to 1.7 percent in the states which increased taxes.

• The economies of the tax-cutting states grew by 33 percent in current dollars from 1990 to 1995 -- compared to just 27 percent in tax-raising states.

• Income for a family of four grew by $1,600 more in the tax-cutting states than in the tax-raising states.

The Cato findings verified that Americans move to lower-tax states.

• In the 1980s, roughly 1,000 people every day left the highest tax states for the lowest tax states.

• In the 1990s, the population has grown by 4.2 percent in the 10 tax-raising states -- but by 7.4 percent in the tax-cutting states.

• While no net new jobs were created in the tax-raising states over the period -- jobs increased 10.8 percent in the tax-cutters.

The states' experience with reducing taxes is of special relevance to the current debate in Washington, Moore points out, because many states have reduced tax rates across-the-board -- as Bob Dole proposes -- to their substantial benefit.

Source: Stephen Moore (Cato Institute), "Proof of Tax Cut Potential in the States," Washington Times, October 27, 1996.