Government debt hit a record $16 trillion last week, accompanied by the usual calls for tax increases to help plug the gap between revenue and expenditures. But for those who believe that the way out of our deficit includes raising taxes, there’s a cautionary study that suggests otherwise.
A study by the American Institute for Economic Research indicates that higher taxes are not the answer. In an examination of federal tax receipts as a percent of gross domestic product since World War II, the Institute concluded that federal receipts exceeded 20 percent of GDP only once, reaching 20.6 percent in 2000.
Register or login for access to this item and much more
All Accounting Today content is archived after seven days.
Community members receive:
- All recent and archived articles
- Conference offers and updates
- A full menu of enewsletter options
- Web seminars, white papers, ebooks
Already have an account? Log In
Don't have an account? Register for Free Unlimited Access