Taxation and Economic Growth
High taxes massively reduce economic growth, lower net wages and thus reduce the population’s prosperity. The longer governments burden their citizens with high taxes, the greater the loss of wealth.
A recent study by Professor Richard K. Vedder and Jonathan Robe, published in December 2009, provides ample evidence that high taxes do not merely correlate significantly and negatively with economic growth in theory (as illustrated, for example, by the Laffer curve).
Rather, the study demonstrates this strong negative correlation by comparing US states with high and low tax burdens, as well as states with high and low tax burdens in OECD countries.