https://www.ntanet.org/NTJ/49/4/ntj-v49n04p617-42-taxation-economic-growth.pdf
"In this paper, we reexamine the relationship between economic growth and taxation in light of the accumulated economic evidence, both from the United States and other countries. While many economists would agree with the proposition that “high taxes are bad for economic growth,” we show that this proposition is not necessarily obvious, either in theory or in the data. However, we find that the evidence is consistent with lower taxes having modest positive effects on economic growth. While such growth effects are highly unlikely to allow tax cuts to pay for themselves, they can contribute to substantial differences in the level of economic activity and living standards, particularly over the long term"
Blanket statements on the growth generated by tax cuts should be avoided. Also the idea that growth will 'pay' for tax cuts can't be supported.
"In this paper, we reexamine the relationship between economic growth and taxation in light of the accumulated economic evidence, both from the United States and other countries. While many economists would agree with the proposition that “high taxes are bad for economic growth,” we show that this proposition is not necessarily obvious, either in theory or in the data. However, we find that the evidence is consistent with lower taxes having modest positive effects on economic growth. While such growth effects are highly unlikely to allow tax cuts to pay for themselves, they can contribute to substantial differences in the level of economic activity and living standards, particularly over the long term"
Blanket statements on the growth generated by tax cuts should be avoided. Also the idea that growth will 'pay' for tax cuts can't be supported.
