Tuesday, March 16, 2010

Pay less taxes, get more services

For a well-reasoned article on our national disconnect between demanding less taxes and more government services, read this piece by David Leonhardt in the New York Times.

Then again, do we really need another well-reasoned article on the connection between taxes and government services? Will it ever matter?

Well, you decide. Here's a graph from the column:

"In recent years, economic research has suggested that moderate changes in the tax law don’t actually have a huge impact on growth. You don’t need econometrics to grasp this, either. Just look at the last 20 years. Economic growth after Bill Clinton’s tax increases was far more rapid than economic growth after George W. Bush’s tax cuts. Despite the Bush tax cuts, average annual growth over the last decade — even before the Great Recession began — was slower than in any decade since World War II."

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