Policy: Budgets & Deficits

CBO: Higher taxes discourage what's being taxed

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Politics,Beltway Confidential,Philip Klein,Taxes,Budgets and Deficits,CBO

Shocking, I know, but Congressional Budget Office Director Doug Elmendorf testified today before the House Budget Committee that, "Higher tax rates generally discourage the thing that's being taxed."

Elmendorf continued, "Higher tax rates on work, on balance, reduce work effort. Higher tax rates on the return to saving, on balance, reduces the among of saving."

Video below:

 

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