As the research suggests, for every dollar of additional taxes that the government collects, there is approximately $3 of lost economic output for the U.S. economy.
http://emlab.berkeley.edu/users/dromer/papers/RomerandRomerAERJune2010.pdf
Found the original article source, here’s a bigger sample;
Remembering Christina Romer: Tax Increases and Their Economic Impact
http://seekingalpha.com/article/219751-remembering-christina-romer-tax-increases-and-their-economic-impact
In June of this year, a little known organization called the American Economic Review published a 39 page research article, titled “The Macroeconomic Effects of Tax Changes: Estimates Based on a New Measure of Fiscal Shocks.” I have quoted from the publication here:
“This paper investigates the causes and consequences of changes in the level of taxation in the postwar United States. Our results indicate that tax changes have very large effects on output. Our baseline specification implies that an exogenous tax increase of one percent of GDP lowers real GDP by almost three percent… and that [capital] investment falls sharply in response to exogenous tax increases.”
In other words, for every dollar of additional taxes that the government collects, there is approximately $3 of lost economic output for the U.S. economy.