I read your account of the Katz/Hayworth meeting in the Putnam County Times, which was held at the Patterson Town Hall on March 19, 2011.
According to the article Jeff Green of Kent stated “that there is a correlation between increasing jobs and increasing the taxes on wealthy people and corporations.” Assemblywoman Nan Hayworth responded by stating the Italian Economist Alberto Alesino conducted a study of “20 Nations that were in fiscal crisis [such] as we are facing.” Hayworth further stated that Alesina’s study concluded that “countries that cut taxes and cut government spending did well.”
First, Alesina has conducted numerous studies and the only study I could find that closely approximates that dates of the fiscal crisis was published in 2009 and the data used for the period ended in 2007, well before the 2008 collapse.
In addition, Congresswoman Hayworth, at least according to the article, did not identify which 20 countries Alesina studied. However, a review of Alesina’s study demonstrates that the countries studied were members of the OECD. A review of the statistics of the OECD countries, while not exactly contradicting her claim, does not support her contention that lower taxes leads to higher growth. The [...]