Monday, July 4, 2011

Cool Charts about Taxes and GDP

I've seen several interesting charts about the impact of tax rates on the economy, but I'm generally frustrated with the small amounts of data presented, so I looked up the source data on revenues, real GDP growth, and top tax rates to make a sweet chart.  On a related note, here's a post about the Reagan tax increases that Republicans should read.

Now onto the good stuff.  Below are reproductions of the charts (in order of information density) from the "several interesting charts" links, as well as the one I made myself.  If you're curious about how some economists interpret this data, read the source posts.

Large interactive version of my chart is here.
Small static image below:


  1. I like the Charts but I would like to see the line for Total GDP on it as well. The focus of decreased taxation is not just about providing revenue for the use of government. It is also about the effect of leaving money in the hands of the people and corporations and the effect this has on private sector growth and the overall GDP. I find it interesting that the revenue curve is relatively flat despite and dramatic down slope in tax rates over the entire time period. Why do you think that is?

  2. Obviously, the GDP change lines gesture at economic growth under varyling levels of taxation. Total GDP would be harder to fit onto the chart without dwarfing the other lines, but I don't think total GDP gives us any relevant information that change in GDP leaves out.