Former Senior Reagan economist warns against US stimulus spendingExecutive SummaryIf there is a Republican administration after the November presidential elections, we can expect a significant change of policy on tax, spending and stimulus.There is a rich variety of data from the USA that...

If there is a Republican administration after the November presidential elections, we can expect a significant change of policy on tax, spending and stimulus. There is a rich variety of data from the USA that demonstrates that raising tax rates often reduces revenues and vice versa. This is...

The government can redistribute income but cannot create it out of thin air.

The proposition that increases in tax rates discourage market- sector production and may therefore, beyond a certain level, be counterproductive in raising tax revenue is an old issue in the eco- nomic literature. Its recent revival has generated considerable con- troversy and interest among...