I have written about how tax hikes don’t reduce growth in many instances because it depends on how the additional tax revenue is spent by the government.
It seems to me that, as is ever the case, we are missing some rather important omitted variables here.... One example would be immigration, which tends to increase GDP simply because it means more people doing more stuff. I'd be more interested in seeing a chart showing the effect of tax hikes/reduction on GDP *per capita*.
Most people do not look at the facts, they have an opinion and then look for the facts that support their opinions. And especially so the writers in the press, who also have to write what their paymasters want to hear.
It seems to me that, as is ever the case, we are missing some rather important omitted variables here.... One example would be immigration, which tends to increase GDP simply because it means more people doing more stuff. I'd be more interested in seeing a chart showing the effect of tax hikes/reduction on GDP *per capita*.
Well, it's in the second chart in the post. The purple bars show the impact of tax hikes on GDP/capita.
Most people do not look at the facts, they have an opinion and then look for the facts that support their opinions. And especially so the writers in the press, who also have to write what their paymasters want to hear.
Do these numbers for the US include the State income tax? For CA that would be another 10%
Also, stated charge sales tax. For CA around 9%. This can vary as cities add to it.
Nope, that’s federal taxes only.
I don't think we can just blindly trust this one study.
Usually a change in one tax is not the only economical change in any given year and measuring just that and GDP can be highly misleading.
Here are many studies that show the exact opposite effect of increase of corporate tax %:
1- A Sweden-specific study (1951–2010) found no significant link between corporate tax rates and GDP growth, contradicting cross-country analyses. https://www.diva-portal.org/smash/get/diva2:495706/FULLTEXT01.pdf
2- A meta-analysis of 441 estimates found corporate tax cuts have a weak average growth effect (0.02% GDP growth per 1-point rate cut), but correcting for publication bias reduced this to near zero https://wiiw.ac.at/do-corporate-tax-cuts-boost-economic-growth-dlp-5821.pdf