Not the conclusions you might expect! See the other chart at the link for more evidence. Excellent!

If the income tax was abolished, like Ron Paul advocates, and Americans retained what is now deducted from their paychecks, how do you think the economy would be effected? Yes, it would increase discretionary income, and they would save, invest, or spend it. Wouldn't you?

Suspect that the superstitious faith that fiddling with taxes, interest rates and other toys of the monetarist matrix has little long lasting effect on the one thing that economists always seem to miss: the real economy.