Democrats to Increase Taxes and Spending, Setting New Records
Higher taxes and increased government spending will generally slow economic growth. This correlation has been supported throughout history many times, but it's something not generally discussed by Democrats or the mainstream media.
Here's some examples to get started on the subject. Not everyone is in agreement, but I generally take the position that higher taxes and/or higher government spending takes resources from the private sector, which has a moderating affect on growth:
- Higher business taxes and lower investment 'not a plan for growth'
- What Is the Evidence on Taxes and Growth?
- Tax Rates and Economic Growth
- Does Government Spending Affect Economic Growth?
- High Implicit Tax Rates Trap Poor People in the Quicksand of Government Dependency
House Democrats are also thinking about boosting the minimum tax on the foreign income of U.S. companies to 16.5% from 10.5%, as well as raising the top capital-gains tax rate to 28.8% from 23.8%.