The John Locke Foundation commissioned the Beacon Hill Institute at Suffolk University to model the economic impact of three tax proposals. The BHI report concluded:
Tax increases bring more revenue into government coffers, but that money comes out of the state’s households and businesses, reducing their buying power. Conversely, a tax cut will necessitate losses in government jobs and services, while increasing the purchasing power of those same households and businesses. Here, the tax cuts produce larger benefits to the private sector than the cost to the public sector, while the tax hikes produce smaller benefits to the public sector than the costs to the private sector.
