Taxes and economic growth: what is all the fuss about?
“Higher taxes are bad for growth” is often seen as more of a political mantra than a summary statement based on evidence. So, which is it? This presentation will lay out some of the evidence, based on careful analysis by some of the world’s leading academic and fiscal experts. Unfortunately consensus is hard to find with three quite different interpretations of the link between fiscal policy and growth, from: “it matters, and matters a lot”, to “it matters, but not a lot” to “it matters in theory but not in practice”. So, which is correct? And which is correct for New Zealand?
Gemmell, Norman. 2008. "Taxes and Economic Growth: what is all the fuss about?" Motu Public Policy Seminar, May.
Motu code: WPS0805