A survey of economic literature finds general agreement among researchers that higher taxes lead to lower economic growth. Stimulus spending can help those hit hardest by a recession to weather the storm, but will not help the economy to recover faster. The best prescription for reviving the economy involves lowering taxes and balancing the budget.

This study provides a review of the academic literature that has examined the relationship between taxation and economic growth, with an emphasis on the taxation of income. The study provides reliable information that may inform policy options. Key considerations in evaluating the role of tax policy in economic growth include: Taxes and economic activity are inversely related; tax policies between jurisdictions are interrelated; taxes and spending go together; and, the impact of taxes is relative.

The Show-Me Institute announces its summer 2010 internship program.

Economic principles explain why the “principal-agent” problem has led to questionable activity by corporate boards. The same incentives also hold in the public sphere. Although the principal beneficiaries of police service are citizens, the Board of Police Commissioners answers only to the governor. This structure gives rise to potential problems.

Fehlig Brothers Box & Lumber has been in business since 1873, and located in Saint Louis' north side for 55 years. Company president Jack O'Leary said that while some area residents and businessmen are skeptical of the $8.1 billion plan put forward by developer Paul McKee and NorthSide Regeneration LLC, he’s generally for it. However, according to NorthSide’s redevelopment plan, a good portion of Fehlig Brothers is slated for “open space.”

Fehlig Brothers Box & Lumber has been in business since 1873, and located in Saint Louis' north side for 55 years. Company president Jack O'Leary said that while some area residents and businessmen are skeptical of the $8.1 billion plan put forward by developer Paul McKee and NorthSide Regeneration LLC, he’s generally for it. However, according to NorthSide’s redevelopment plan, a good portion of Fehlig Brothers is slated for “open space.”

Three houses fall squarely within the boundaries of the recently approved $8.1 billion development of the city of Saint Louis' north side. Of course, about 4,600 other properties also fall within those boundaries, but in the case of the 2200 block of Madison, NorthSide Regeneration LLC, the company behind the development, may be endangering one of its most frequently invoked promises. That promise concerns the use of eminent domain.

David Stokes, a policy analyst with the Show-Me Institute, testifies before the Missouri House of Representatives Job Creation and Economic Development Committee, about the economic effects of pending legislation, House Joint Resolution 81. Stokes argues that the commercial surcharge rates established 25 years ago long outdated, and that legislation allowing local officials to reduce those rates in response to changing economic conditions would provide a strong incentive for businesses to stay in Missouri.

Despite a $50 million shortfall, Metro is pressing ahead with a plan to build new light rail lines. Rather than implementing fanciful new rail construction plans, however, Metro should implement more fiscally sound solutions to the area’s mass transit woes, such new, higher-speed bus lines, which are cheaper and far more adaptable than light rail.

Dave Roland, a policy analyst with the Show-Me Institute, testifies before the Senate Governmental Accountability and Fiscal Oversight Committee and the House Special Standing Committee on General Laws about SJR 25 and HJR 57, also known as the Health Care Freedom Act, which would offer citizens the opportunity to modify the Missouri Bill of Rights to formally recognize their right to decide for themselves whether they will participate in any private health care system. Under this amendment, the government would not be permitted to prevent citizens from offering or accepting direct payment for health care services, and neither could it substantially limit the purchase or sale of health insurance in private health care systems.