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Tax Hikes, Economic Clouds, and Silver Linings: A Review of Deficits and the Economy

Tax Hikes, Economic Clouds, and Silver Linings: A Review of Deficits and the Economy
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Executive Summary: Tax Hikes, Economic Clouds, and Silver Linings: A Review of Deficits and the Economy

Executive Summary: Recent empirical work using different approachesaffirms the traditional view that there is a clear and robustrelationship between lower taxes and higher economic output.Federal, state, and local policymakers should therefore look forevery opportunity to reduce taxes, especially those that are mostharmful to economic growth such as marginal tax rates and taxes onsaving and investment.

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