Taxes, Economic Growth, and Budget Deficits: What Washington Can Learn from the States

Publication Date: July 1989

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

Author(s): Stephen Moore

Research Area: Banking and finance

Keywords: Budget

Type: Report

Abstract:

It now appears that the availability of tax revenues is the only budget constraint limiting the size of government. With government now consuming more than one-third of gross national product, and taxes back up to their pre-tax revolt levels, the U.S. is at a critical point.The state experience shows not only that raising federal taxes further is likely to make the budget deficit picture worse, but also that it could derail nearly seven years of economic expansion.