--- title: "Meaning & Key Takeaway of: Tax increases appear to have a very large…" description: "\"Tax increases appear to have a very large sustained and highly significant negative impact on output. Since most of our exogenous tax changes are in fa..." image: "https://sms4smile.com/quotes/i/77a/christina-romer-16059_cutting_tax-increases-appear-to-have-a-very-larg_586996.jpg" --- # Tax increases appear to have a very large sustained and… ![“Tax increases appear to have a very large sustained and highly significant negative impact on output. Since most of our exogenous tax changes are in fact reductions, the more intuitive way to express this result is that tax cuts have very large and persistent positive output effects” quote by Christina Romer](https://sms4smile.com/quotes/i/77a/christina-romer-16059_cutting_tax-increases-appear-to-have-a-very-larg_586996.jpg) [Download](https://sms4smile.com/quotes/i/77a/christina-romer-16059_cutting_tax-increases-appear-to-have-a-very-larg_586996.jpg) [Open image](https://sms4smile.com/quotes/i/77a/christina-romer-16059_cutting_tax-increases-appear-to-have-a-very-larg_586996.jpg) > “Tax increases appear to have a very large sustained and highly significant negative impact on output. Since most of our exogenous tax changes are in fact reductions, the more intuitive way to express this result is that tax cuts have very large and persistent positive output effects” [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) ## About This Quote This interpretation was drafted with AI assistance. It is one reading of the quote, not the author's own explanation. Higher taxes reduce economic output; cutting taxes tends to boost output over time. **In simple terms:** Taxes hurt growth; cuts help growth. Key Takeaway Consider tax policy impacts before changes. Themes economics public policy growth taxation Mood analytical cautious Type economic policy When to use this quote - government budgeting - business investment - public services - inflation control Key Concepts fiscal multiplier long‑run effects policy design Questions to Reflect On - What long‑term effects do tax cuts have on inequality? - How can governments balance revenue and growth? A Different Perspective Tax cuts may increase deficits or inequality. ★ ★ ★ ★ ★ No ratings yet [Economics](https://sms4smile.com/quotes/about/economics/) [Facts](https://sms4smile.com/quotes/about/facts/) [Impact](https://sms4smile.com/quotes/about/impact/) [Intuitive](https://sms4smile.com/quotes/about/intuitive/) [Persistent](https://sms4smile.com/quotes/about/persistent/) [Philosophy](https://sms4smile.com/quotes/about/philosophy/) [Political](https://sms4smile.com/quotes/about/political/) [Productivity](https://sms4smile.com/quotes/about/productivity/) [Tax cuts](https://sms4smile.com/quotes/about/tax-cuts/) [Tax increases](https://sms4smile.com/quotes/about/tax-increases/) [Taxes](https://sms4smile.com/quotes/about/taxes/) ## Related quotes > [Tax increases appear to have a very large sustained and highly significant negative impact on output.](https://sms4smile.com/quotes/christina-romer/tax-increases-appear-to-have-a-very-large-sustained-and-highly-2/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [I am very open to looking at potential tax changes to improve housing affordability.](https://sms4smile.com/quotes/gladys-berejiklian/i-am-very-open-to-looking-at-potential-tax-changes-to-improve-housing/) [Gladys Berejiklian](https://sms4smile.com/quotes/author/gladys-berejiklian/) > [I do think there is room at the very top for marginal tax changes.](https://sms4smile.com/quotes/anonymous/i-do-think-there-is-room-at-the-very-top-for-marginal-tax-changes/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [ Everything \[Ronald Reagan\] got, the tax cuts, he had Democrats outnumbering him in the House and Senate everywhere. There were certain realities that he… ](https://sms4smile.com/quotes/rush-limbaugh/everything-ronald-reagan-got-the-tax-cuts-he-had-democrats/) [Rush Limbaugh](https://sms4smile.com/quotes/author/rush-limbaugh/) > [Obama just helped GOP limit tax increases. He created Obama tax cuts that are nearly identical to Bush tax cuts. Except they're permanent.](https://sms4smile.com/quotes/anonymous/obama-just-helped-gop-limit-tax-increases-he-created-obama-tax-cuts/) [Anonymous](https://sms4smile.com/quotes/author/anonymous/) > [Here's what I can tell the American people: 95 percent of you will get a tax cut. And if you make less than $250,000,…](https://sms4smile.com/quotes/barack-obama/here-s-what-i-can-tell-the-american-people-95-percent-of-you-will-get/) [Barack Obama](https://sms4smile.com/quotes/author/barack-obama/) > [There is a direct link between the federal tax cut of 2001 and state tax increases in 2003. When the federal government's mistakes force…](https://sms4smile.com/quotes/senator-john-kerry/there-is-a-direct-link-between-the-federal-tax-cut-of-2001-and-state/) [Senator John Kerry](https://sms4smile.com/quotes/author/senator-john-kerry/) > [It was absolutely critical to renew the Bush tax cuts. Letting them expire would result in a massive tax increase that would retard economic…](https://sms4smile.com/quotes/mitt-romney/it-was-absolutely-critical-to-renew-the-bush-tax-cuts-letting-them/) [Mitt Romney](https://sms4smile.com/quotes/author/mitt-romney/) > [Any Democrat who squirms on the tax-cut issue in the primaries has no chance ' zero ' to win the nomination. Each will have…](https://sms4smile.com/quotes/dick-morris/any-democrat-who-squirms-on-the-tax-cut-issue-in-the-primaries-has-no/) [Dick Morris](https://sms4smile.com/quotes/author/dick-morris/) > [Tax cuts are temporary, tax increases are permanent.](https://sms4smile.com/quotes/neal-boortz/tax-cuts-are-temporary-tax-increases-are-permanent/) [Neal Boortz](https://sms4smile.com/quotes/author/neal-boortz/) > [I don't hear anything from Trump about tax increases. I hear tax cuts from him. I hear tax reform from him.](https://sms4smile.com/quotes/rush-limbaugh/i-don-t-hear-anything-from-trump-about-tax-increases-i-hear-tax-cuts/) [Rush Limbaugh](https://sms4smile.com/quotes/author/rush-limbaugh/) > [Why does a slight tax increase cost you two hundred dollars and a substantial tax cut save you thirty cents?](https://sms4smile.com/quotes/peg-bracken/why-does-a-slight-tax-increase-cost-you-two-hundred-dollars-and-a/) [Peg Bracken](https://sms4smile.com/quotes/author/peg-bracken/) > [Many Republicans have what I call a 'tax-cut syndrome' where they have never seen a tax cut they didn't really like and didn't see…](https://sms4smile.com/quotes/peter-george-peterson/many-republicans-have-what-i-call-a-tax-cut-syndrome-where-they-have/) [Peter George Peterson](https://sms4smile.com/quotes/author/peter-george-peterson/) > [Our estimates suggest that a tax increase of 1 percent of GDP reduces output over the next three years by nearly 3 percent. The…](https://sms4smile.com/quotes/christina-romer/our-estimates-suggest-that-a-tax-increase-of-1-percent-of-gdp-reduces/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [President Obama has repeatedly urged Congress to let the Bush tax cuts expire for those earning more than $250,000 a year. Increasing rates on…](https://sms4smile.com/quotes/christina-romer/president-obama-has-repeatedly-urged-congress-to-let-the-bush-tax/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) ## More by Christina Romer > [I think something that forces financial institutions to write down underwater mortgages, I think, would be a sensible thing to do.](https://sms4smile.com/quotes/christina-romer/i-think-something-that-forces-financial-institutions-to-write-down/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [I think where I differ a little bit, we absolutely have to think about the deficit looking down the road. And certainly that's something…](https://sms4smile.com/quotes/christina-romer/i-think-where-i-differ-a-little-bit-we-absolutely-have-to-think-about/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [You care about the deficit because it allows you to do things you need to do to help people who are suffering.](https://sms4smile.com/quotes/christina-romer/you-care-about-the-deficit-because-it-allows-you-to-do-things-you/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [The central question is whether Medicare and Medicaid should remain entitlement programs guaranteeing a certain amount of care, as Democrats believe, or become defined…](https://sms4smile.com/quotes/christina-romer/the-central-question-is-whether-medicare-and-medicaid-should-remain/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [The stock market crash in October 1929 didn't destroy a particularly large amount of wealth or make people highly pessimistic. 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Bush - remember the compassionate conservative? - I have a good name for the fundamental principle that should…](https://sms4smile.com/quotes/christina-romer/thanks-to-former-president-george-w-bush-remember-the-compassionate/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [President Obama has repeatedly urged Congress to let the Bush tax cuts expire for those earning more than $250,000 a year. Increasing rates on…](https://sms4smile.com/quotes/christina-romer/president-obama-has-repeatedly-urged-congress-to-let-the-bush-tax/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [If every other store in town is paying workers $9 an hour, one offering $8 will find it hard to hire anyone - perhaps…](https://sms4smile.com/quotes/christina-romer/if-every-other-store-in-town-is-paying-workers-9-an-hour-one-offering/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [There's a joke in economics about the drunk who loses his keys in the street but only looks for them under the lightposts. When…](https://sms4smile.com/quotes/christina-romer/there-s-a-joke-in-economics-about-the-drunk-who-loses-his-keys-in-the/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [If increasing income equality is the goal, it might be wiser to put money into infrastructure than to subsidize manufacturing. Construction also pays good…](https://sms4smile.com/quotes/christina-romer/if-increasing-income-equality-is-the-goal-it-might-be-wiser-to-put/) [Christina Romer](https://sms4smile.com/quotes/author/christina-romer/) > [Recovery measures work better when they raise confidence - as Franklin D. Roosevelt understood. 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