From the NCPA:
Increasing taxes to pay for government spending results in a higher economic loss for the public, say Ernest S. Christian and Gary A. Robbins, executive director and the chief economist, respectively, of the Center for Strategic Tax Reform in Washington, D.C.
- Between 2013 and 2022, tax increases will do $2 worth of damage for every $1 of added tax revenue.
- In 2013 alone, income taxes will account for $270 billion in government revenues.
- But the public will experience economic loss that is $540 billion in deadweight loss (the economic cost of tax increases).
In the end, the public suffers more harm because of the tax increases in the form of either fewer private sector jobs or lower living standards. According to economists, if income tax rates are increased in January, $1 of tax revenue will cost the public $2.50.