From USA we have very clear indicators that lower taxes hurt the economy more.
When Bush reduced taxes the economy went down, When Obama increased them the economy went up, when Trump reduced them the economy went down, when Biden increased them the economy recovered. Now Trump has reduced taxes with an insane amount, and USA is on their way to recession!
There probably is some sort of ideal balance, but what that is we don’t really know. For now it seems that higher taxes generally are better for the economy. Just look at Denmark, often claimed to have the highest taxes of the world, and their economy has been absolutely stellar for decades.
Even as one of the hardest hit by COVID early on, they spend massive resources curbing both the spread and economic effects of COVID, money covered almost entirely by taxes, and they came out basically on top of everybody else at the other end!
Taxes spend on improving conditions for the population, actually help the economy!
Taxes spend on improving conditions for the population, actually help the economy!
It seems like one of those things which should be obvious. Why are we doing this whole “economy” thing? Because people want stuff. But if people can’t buy stuff there is no reason to keep producing.
From USA we have very clear indicators that lower taxes hurt the economy more.
When Bush reduced taxes the economy went down, When Obama increased them the economy went up, when Trump reduced them the economy went down, when Biden increased them the economy recovered. Now Trump has reduced taxes with an insane amount, and USA is on their way to recession!
There probably is some sort of ideal balance, but what that is we don’t really know. For now it seems that higher taxes generally are better for the economy. Just look at Denmark, often claimed to have the highest taxes of the world, and their economy has been absolutely stellar for decades.
Even as one of the hardest hit by COVID early on, they spend massive resources curbing both the spread and economic effects of COVID, money covered almost entirely by taxes, and they came out basically on top of everybody else at the other end!
Taxes spend on improving conditions for the population, actually help the economy!
It seems like one of those things which should be obvious. Why are we doing this whole “economy” thing? Because people want stuff. But if people can’t buy stuff there is no reason to keep producing.