Lower tax rates spur economic growth,
as Larry Kudlow explains: Evidence, Evidence, and More Evidence: Lower tax rates spur economic growth. End of story.
No amount of academic-style econometric finagling can take away from the historical evidence that flatter and simpler taxes are the best way to maximize our economy’s potential to grow.
To think otherwise only defies the laws of common sense. Higher after-tax returns to work, investment, and entrepreneurial risk-taking will promote more employment, more capital formation, and more wealth. If it pays more to produce then people will produce more. As Dr. Laffer put it three decades ago, when you tax something more you get less of it. When you tax something less you get more of it. Higher after-tax rewards always generate a greater supply of work effort and investment capital.
Now, if only NJ politicians were listening . . .