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What Type of Tax Changes Boost Economic Growth?

Tuesday, February 14, 2017 12:04
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(Before It's News)

Me, at MoneyWatch:

Not just any kind of tax cut can boost economic growth: President Donald Trump promised last week he would unveil a “phenomenal” tax reform package in the next few weeks. Although no details were offered, Mr. Trump’s past statements suggest that his proposal will adhere to fairly standard supply-side principles.

The idea behind supply-side policy is to encourage more investment, more labor effort and technological innovation through changes in the tax code and regulatory structure.

Have these policies been successful in the past? Are some types of policies better than others at spurring economic growth? To answer those questions, it’s useful to put supply-side policies into broad categories…



Source: http://economistsview.typepad.com/economistsview/2017/02/what-type-of-tax-changes-boost-economic-growth.html

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