Policy Documents

Tax Myths Debunked

Eric Fruits and Randall Pozdena –
February 6, 2013

The U.S. economy is suffering its deepest and most prolonged recession since the Great Depression. The fundamental causes of the recession and the slow recovery are the result of two decades of poorly conceived housing credit policies and the adoption of failed economic Keynesian economic policies, say economists Eric Fruits and Randall Pozdena, who add prescriptions for higher taxes on the wealthy, and other “progressive” nostrums, will do nothing to improve the situation.

They are the authors of Tax Myths Debunked, published by the American Legislative Exchange Council. Their report exposes what the authors describe as seven “myths” commonly used by advocates of higher taxes and other economically harmful policies. Using both theoretical and empirical evidence, Tax Myths Debunked confirms that the key to economic prosperity at the state level is in free-market, pro-growth tax and fiscal policy.