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EconoMeter: Do tax cuts lead to economic growth?

Jonathan Horn, U-T SAN DIEGO

Sunday, September 23, 2012

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Kelly Cunningham, National University System

Basic economics and simple logic should make it obvious reducing costs for business allows greater productivity, while taxes add to the expense of any economic activity. Every hour and dollar spent complying with taxes takes time and resources away from the incentives for profit-seeking, risk-taking businesses to grow and hire more workers. Taxes also burden savings and investments, siphoning money from much more productive, market-based private sector endeavors to less efficient, often wasteful bureaucratic actions. The lower taxes burden the private sector economy, the greater the savings, investment and productivity goes to real economic efforts and long-term growth.