ALEC Releases New Report: Tax Myths Debunked
Across the country, states are seeking new ways to become more competitive and enhance economic growth. Unfortunately, economic prosperity can be elusive, as some “well-known” policy prescriptions fail to deliver the growth that they promise. Unfortunately, misconceptions about taxes are all too prevalent in public policy debates.
ALEC’s newest report, Tax Myths Debunked, allows us to set the record straight as the report examines the implications of Keynesian policies. In the aptly named report, Economists Dr. Randall Pozdena and Dr. Eric Fruits refute some of the Left’s popularly repeated myths about taxes and spending. Using both theoretical and empirical evidence, Tax Myths Debunked demonstrates that the key to economic prosperity at the state level is in free-market, pro-growth policy.
The publication takes aim at seven popularly held misconceptions about tax and fiscal policy. From the myth that raising taxes on the rich will not harm the economy, to the fallacy that increased government spending is good for an economy during recessions; the authors use the latest data from academic studies across the country to correct these widespread misunderstandings.
The publication also analyzes the work of advocates for a free-market approach to making a state’s economy more competitive, such as ALEC’s Rich States, Poor States. Taxes matter to economic growth, and Rich States, Poor States highlights how economic competitiveness drives income, population, and job growth in the states. The correlation between poor policy and poor economic results is indisputable. Tax Myths Debunked also refutes many claims and exposes the deceptive metrics utilized by the advocates of higher taxes and larger government.
The authors of Tax Myths Debunked demonstrate the flaws in methodology of the proponents of big government who attempt to discredit the conclusions of Rich States, Poor States. At a time when states are trying to solve budget shortfalls and find innovative ways to grow their state’s economy, truthful analysis is paramount. Tax Myths Debunked is an excellent resource that separates the myths from realities of tax and fiscal policy.