By Jordan Eizenga
One can understand the attraction for thinking that tax cuts should stimulate higher rates of economic growth. With greater after tax income, workers are more likely to work harder and longer and, facing fewer taxes, entrepreneurs are in a better position to start companies and hire new workers. The problem is that the data does not bear this out either. For example, the Bureau of Labor Statistics, a statistical agency in the United States federal government, notes that over the past decade of lower tax rates, the number of business start-ups has actually declined.
Even if tax cuts generated increased economic growth rates, both conservative and liberal economists agree that economic growth would not increase anywhere near enough to offset the cost of the cuts.
The whole thing is absolutely required reading.
Lemkin 