The Literature on Taxes and Economic Growth

Many readers of the Oregon Catalyst believe that higher taxes curtail economic growth, and lower taxes stimulate economic growth. Progressives believe the opposite. Progressives fancy themselves as folks that follow the science, but the social science doesn’t back their deeply held faith about tax policy. The idea that raising taxes to fund higher spending is inherently better for economic growth has long been evidence-starved.

The peer-reviewed economic literature supports the basic premise that keeping public sector costs down enables more economic opportunity.

Why do progressives reject the science? Should we call them economic stagnation deniers?

Eric Shierman lives in Salem and is the author of We were winning when I was there.