The Least, First

Monte Asbury's blog

TheTrueConservative: Higher tax rates and economic growth

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Intriguing! After the post just prior to this, Do lower taxes on the top 1% boost economy?, a comment appeared from Steve Roth at TheTrueConservative. He offers an outlook unusual on the web. Go check it out. Here’s a sample of his work, comparing taxes to changes in gross domestic product of nations:

clipped from trueconservative.typepad.com

Oecd_taxes_and_gdp_growth_scatter
If taxes have a profound effect on growth, you’d expect to see a trend from the upper left (low taxes, high growth) to the lower right. And there is the faintest glimmer of one—check out the trend line.
Over twenty years the difference between low (23%) and high (46%) taxers was [only] a profound several percentage points of GDP growth.
  blog it
Follow the link to the other chart in his post, which compares tax increase with GDP growth. Here’s his conclusion:

. . . there’s not a shred of evidence that taxes in the range of 30–50% of GDP are the catastrophe that American anti-taxers assert.In fact, since all of these stable, prosperous, successful countries tax in the range of 25–50% GDP, the strongest evidence we see here is that taxes (or actually, expenditures) in that range are necessary to that prosperity. [emphasis mine]

C’mon, “economic conservatives” – let’s face the facts: modern conservatism’s anti-tax passion is the emperor’s new clothes. Has it made <i>you</i> more prosperous? Of course not.

Let’s question the shibboleths that keep us apart, and get on with building a better society.


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Written by Monte

January 17, 2008 at 1:48 pm

Posted in patriotism, Politics

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