Quote:
Originally Posted by the_only_turek_fan
Are you denying that higher taxes impede economic growth?
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Focusing on one side of a government (taxes) in a vacuum in itself is wrong. Some government activities impede economic growth, when spent on stupid stuff like the war room. (Or investing in a dead pipeline)
However, if you are investing in social programs, R&D, business grants or health care as a few examples you end up with economic growth.
You can also have net neutral tax programs that are meant to steer economic growth away from undesirable industries and towards desirable ones (for example carbon taxes).
You also have taxes that are meant to make sure economic growth continues within a region, like resource royalties, so that companies don't come in mine all the resources then take the profits to another jurisdiction or worse use financing tricks so the region sees not benefits.