4 By the numbers . Refer to Table 12A.1 on p. 203 to fi nd the indexes for tax capacity, tax effort, fi scal need and fi scal comfort for your state and three neighboring states. How does your state compare? What factors do you think infl uence your state’s tax capacity and fi scal need? Based on this information, would you argue that your state is a high, low, or average tax state? Explain your answer.