Tax Debate Tax Cuts have been a part of the debate on public policy for the last decade. Every political party have felt compelled to cut taxes. The biggest reasons for this is that, one faster growth results from lower taxes, and two, because of competitive pressures such as globalisation they aren't left with much of a choice.
Although, in this light, Andrew Jackson Disagrees. He doesn't believe that lower taxes and faster growth have a strong connection. He has done research across the country to prove that there was no connection between economic growth and the price of taxes for the year 1990.
Even though there aren't many economists that would expect a simple connection between these two factors. "Such two-dimensional charts leave out a host of other factors." Jackson still is very content to prove his point.
His biggest point is that like wise⦠high taxes do not discourage work or saving.
Components of economic growth (Saari 2006)
Jackson Park
THE MICHAEL JACKSON & JANET JACKSON COLLECTION CDWith regard to the alleged discouragement to work arising for high taxes, Jackson throws up an amazing counter-argument: "⦠higher average of marginal tax rates on labour income (may) actually increase the willingness of workers to work longer hours, since they need to work those additional hours to get the same or more after-tax income." On the other hand Jackson thinks that social cohesion is the true key to economic growth. And that a "more united society will have the inside lane for economic growth."