Type:

Video

Description:

When the government raises taxes, does it actually collect a larger portion of the US economy? As the U.S. debt and deficit grows, some politicians and economist have called for higher tax rates in order to balance the budget. Professor Antony Davies examines 50 years of economic data and finds that regardless of tax rates, the percentage of GDP that the government collects has remained relatively constant. In other words, no matter how high government sets tax rates, the government gets about the same portion. According to Davies, if we're concerned about balancing the budget, we should worry less about raising tax revenue and more about growing the economy. The recipe for growth? Lower tax rates and a simplified tax code.

Subjects:

  • Social Studies > United States Government
  • Social Studies > Economics
  • Social Studies > Current Events

Education Levels:

  • Grade 11
  • Grade 12
  • Higher Education

Keywords:

government spending, federal debt, federal deficit, government debt, deficit, debt

Language:

English

Access Privileges:

Public - Available to anyone

License Deed:

Creative Commons Attribution 3.0

Collections:

None
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