Why Higher Tax Rates on Income Will Slow Growth, Cost Jobs

Publication Date: May 1993

Publisher: Heritage Foundation (Washington, D.C.)

Author(s): Daniel J. Mitchell

Research Area: Banking and finance; Economics

Keywords: Taxes

Type: Report

Coverage: United States

Abstract:

Raising tax rates on income is the most economically damaging element of the Clinton plan. There is little reason to expect that the higher rates would generate much, if any, additional revenue. By contrast, there is every reason to believe that higher rates on income would fuel new government spending, increase the budget deficit, depress savings and investment, destroy jobs, boost tax shelters, punish families, and hinder America’s international competitiveness.