Taxes and Economic Growth

High taxes massively lower the rate of economic growth, lower effective after-tax wages, and thus the wealth of people. The longer governments place high tax burdens on their population the higher are the losses in wealth.

This recent study from December 2009 by Professor Richard K. Vedder and Jonathan Robe delivers ample evidence, that high taxes are not only in theory significantly negatively correlated with economic growth (e. g. as illustrated in the Laffer curve).
Rather, comparing the States with high tax burdens and the States with low tax burdens in the United States and also the high tax states and the low tax states of the OECD countries this study proves this strong negative correlation.

Download of the Study

Interview Glasshouse with Prof Vedder