"Tax increases appear to have a very large sustained and highly significant negative impact on output"

This quote by Christina Romer suggests that tax boosts have a considerable and lasting unfavorable result on financial output. This implies that when taxes are raised, economic output declines, and this decrease is sustained over a long period of time. This might be due to the truth that when taxes are increased, businesses and individuals have less money to spend, leading to a reduction in financial activity. In addition, greater taxes can cause services and people investing less in the economy, causing a decline in financial output. This quote recommends that tax increases should be avoided if possible, as they can have a substantial and long-lasting unfavorable effect on economic output.