12 July 2010

Tax Cuts Bad For State Level Economic Growth

The more a state cuts its taxes, the less likely it is to experience economic growth.

The comparison is based on the 50 states and DC over more than three decades mapping changes in tax burdens against changes in per capita income. It is in accord with similar data in the U.S. economy as a whole and in international comparisons.

Empirically, low taxes simply do not promote economic growth.

No comments: