With slower economic growth raising fears of a recession, Washington is abuzz with economic stimulus proposals centered on tax rebates. Tax rebates, however, don’t stimulate the economy. Lawmakers currently examining economic stimulus proposals should reject rebates in favor of tax rate reductions. …

High tax rates reduce economic growth, because they make it less profitable to work, save and invest. This translates into less work, saving, investment and capital — and ultimately fewer goods and services. Reducing marginal incometax rates has been shown to motivate people to work more. Lower corporate and investment taxes encourage the savings and investment vital to producing more and better plants, equipment and technology.