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Saturday, 7 March 2015

Instead, he has found that there is ‘a strong negative relation between the relative level of federal spending and tax revenues.'

http://en.wikipedia.org/wiki/Fiscal_illusion

Tax cuts and deficit spending, he argues, makes the cost of government appear to be cheaper than it otherwise would be.
Mourao (2008) attempts to quantify fiscal illusion empirically for almost 70 democracies since 1960.

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