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Flawed Methods Shouldn’t Guide Public Policy
Posted By Allan Freyer On January 25, 2013 @ 2:21 pm In NC Budget and Tax Center | Comments Disabled
In light of Arthur Laffer’s visit to North Carolina this week, a new analysis  by the Institute on Taxation and Economic Policy on the Civitas/Laffer study for our state is particularly timely.
Their main findings are that the report:
“• Fails to control for a large range of important non-tax factors that affect state economic growth.
• Confuses cause and effect by assuming that declines in personal income in 2008 were due to taxes rather than the Great Recession.
• Fails to examine the impact of increased sales taxes on the economy.
• Makes claims that have been previously discredited by mainstream economists and relies on misleading and cherry-picked data.
• Ignores the importance of taxes in financing public investments that have a far greater positive impact on economic growth than reducing tax rates.”
Check out the report in detail here . It adds to the mounting evidence that the Civitas/ Laffer/Senate proposal is a bad one for North Carolina, not least because its case is not supported by the rigorous research needed for undertaking such a radical overhaul of the state’s tax system.
Article printed from The Progressive Pulse: http://pulse.ncpolicywatch.org
URL to article: http://pulse.ncpolicywatch.org/2013/01/25/flawed-methods-shouldnt-guide-public-policy/
URLs in this post:
 new analysis: http://itep.org/itep_reports/2013/01/more-inaccuracies-bigger-omissions-arthur-laffers-newest-study-of-income-tax-repeal-falls-short.php
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