"This review of empirical studies of taxes and economic growth indicates that there are not a lot of dissenting opinions coming from peer-reviewed academic journals. More and more, the consensus among experts is that taxes on corporate and personal income are particularly harmful to economic growth, with consumption and property taxes less so. This is because economic growth ultimately comes from production, innovation, and risk-taking."
Some money quotes of particular interest in this election:
- "Fiscal stimuli based upon tax cuts more likely to increase growth than those based upon spending increases. Fiscal consolidations based upon spending cuts and no tax increases are more likely to succeed at reducing deficits and debt and less likely to create recessions." -Alberto Alesina & Silvia Ardagna, Large changes in fiscal policy: taxes versus spending, in Tax Policy and the Economy, Vol. 24 (Univ. of Chicago Press, 2010)
- "Taxes directed towards public investments first add then subtract from GDP." - N. Bania, J. A. Gray, & J. A. Stone, Growth, taxes, and government expenditures: growth hills for U.S. states, 60 National Tax Journal 193-204 (2007).
- "Tax-financed spending reduces growth in developed countries, increases growth in developing countries." - Stephen Miller & Frank Russek, Fiscal structures and economic growth: international evidence, 35 Economic Inquiry 603-613 (1997).
Sure you can quibble that Tim Hudak's Million Job plan won't create a million jobs, but you cannot honestly state that the main thrusts of lower taxes, lower spending, reduced corporate and home expenses, and reduced regulation won't have a positive impact on the economy. Almost every study agrees that it will.
The Liberals, the NDP, and their union and media lapdogs are simply economic deniers putting their children, and their children's children at financial risk so they can continue down "me me me only about me" path.
h / t to Jack Minz's article in the Financial Post on May 29th. I had to fix his link to get it work.