The relationship between taxation and U.S. economic growth [feedly]
The relationship between taxation and U.S. economic growth https://equitablegrowth.org/the-relationship-between-taxation-and-u-s-economic-growth/ Overview The relationship between taxation and economic growth is hotly debated in economics. Free market economic ideology is based on the premise that constraining "the market" through policies such as increased taxes is bad for economic growth . 1 Yet the economy is not perfectly represented by abstract theoretical models. Empirical studies based on real-world data are often unable to find these negative growth effects. Because neoclassical economic models consistently fail to accurately predict economic growth patterns, policymakers need to rethink using them to analyze tax changes. Researchers have studied many different fluctuations in U.S. tax policy over the past several decades. In 1997 , for example, the United States had much higher average tax rates and especially much higher rates of taxation on wealth and capital th...