The budget deal President Trump signed earlier this month will send federal spending and the deficit skyrocketing. On top of this spending explosion, the administration now plans to add a $500 billion infrastructure bill. Over the past century, comparatively low federal taxes and Americans’ long working hours have kept the U.S. economy growing. Politicians can always provide a rationale for increased spending. But over time high spending necessitates high taxes, and high taxes reduce work and restrain growth.
Economic trends in developed nations consistently show that low taxes and hard work are linked to robust growth. The U.S. is the least taxed of the Group of Seven countries, with a tax haul amounting to 25% of gross domestic product. Americans also work harder than their G-7 peers, with the exception of Canadians, with whom they are roughly tied. These factors have helped the U.S. and Canada lead the G-7 in growth since 2010.
Statistical backup is available here.
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