The economic cost of taxes is lower than many economists thought

This paper measured how much people change their work hours when tax rates shift. It turns out, people do not change their work much, which means taxes do not slow down the economy as much as some believe.

For years, many economists assumed that higher taxes would make people work less, creating an "excess burden" on the economy. This paper provides strong evidence that this burden is much smaller than previously thought. Governments now have more data to consider when debating tax increases for public services.