Taxes & the Economy

November 3, 2020  |  

INVESTING IN PEOPLE & PUBLIC SERVICES PROVIDES A MUCH BIGGER BANG FOR THE BUCK THAN DO TAX CUTS

The chart below shows that for every $1.00 spent on state and local government services, the economy benefits by an estimated $1.39. That is an immediate 39% return on the dollar. By comparison, for every dollar spent on most tax cuts, the economy loses money. For example, $1 spent on corporate tax cuts returns just 51 cents—a loss of almost half of every dollar spent.