This is an interesting article that concludes by saying, "Therefore, as the US has one of the highest corporate income tax rates among OECD countries, and already has the most progressive income tax system of any industrialized nation, the TF concludes that 'the evidence strongly suggests that the key to boosting long-term economic growth in the US is to cut tax rates on corporate and (higher) individual income'." It is arguing against the use of payroll tax cuts, as it stimulates short term growth, but actually has no effect on long term growth. At the same time, high corporate income taxes and and high individual income taxes have a negative effect on long term growth. The author goes on to say that "Estimates suggest that cutting the corporate rate by 10% could be associated with an increase in total real gross domestic product (GDP) growth of 11.1% over the period. High individual income taxes...cutting the top rate by 10% is associated with an increase in total real GDP growth of 7.5% over the period." Do you think these numbers are accurate, or overstated? It kind of sounds like it is too good to be true for everyone involved - corporations, the federal government, and high income individuals. But who will this hurt?
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