Much of the money made by the state firms is being soaked up by payments for welfare functions, including the wages of laid-off workers.

ECONOMIST: China��s state-owned enterprises

They utilize it only for those necessary functions like national defense that by their nature cannot be provided at the state and local level or privately.

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Those functions, calculates David Schultz of Hamline University, account for more than two-thirds of the state budget.

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For example, everyone except the anarchists thinks that the basic law and order functions of the State are worthwhile.

FORBES: If higher taxes are spent wisely, then a tax hike causes a big fall in employment.