We do not have strong empirical evidence linking people's expectations of future deficits to current spending behavior, because expectations are hard to measure; the reliable evidence is the direct effect that higher taxes discourage whatever is taxed, and common sense that future higher taxes are already on the books.

factualpending

Speaker

John Taylor

Evidence Quote

you don't have you just have to go with what you know will affect the behavior which is the tax increase

Source

John Taylor on the State of the Economy 07/19/2010EconTalk
Created: 6/15/2026, 9:17:28 AM

My Notes

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