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Liberty Pulse

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2011 Tax Increases = -6% Drop in GDP?

1 min read

2011 Tax Increases = -6% Drop in GDP?

I read an interesting article by John Mauldin today, in which he mentions that the 2011 tax increases (mainly letting the Bush tax cuts expire) will amount to about an extra 2% increase in tax revenue in relation to GDP.

Taxes may be going up by as much as 2% of GDP in 2011, when you include state and local increases. This could be as much as a 6% drag on GDP over the next three years (probably somewhat front-loaded). So, let