The chart below shows that for every $1.00 spent on state and local government services, the economy benefits by an estimated $1.34. That’s an immediate 34% 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 32 cents—a loss of two-thirds of every dollar spent.
Source: Mark Zandi, Moody’s Analytics