The fastest way to find out what it means is to go to the following section.
This paper investigates the causes and consequences of changes in the level of taxation in the postwar United States. We find that despite the complexity of the legislative process, most significant tax changes have a dominant motivation that fits fairly clearly into one of four categories: counteracting other influences on the economy, paying for increases in government spending (or lowering taxes in response to reductions in spending), addressing an inherited budget deficit, and promoting long-run growth. The last two motivations are essentially unrelated to other factors influencing output, and so policy actions taken because of them can be used to estimate the effects of tax changes on output. Our results indicate that tax changes have very large effects on output. Our baseline specification implies that an exogenous tax increase of 1% of GDP lowers real GDP by almost 3%. Our many robustness checks for the most part point to a slightly smaller decline, but one that is still typically over 2.5%. We also find that the output effects of tax changes are much more closely tied to the actual changes in taxes than to news about future changes, and that investment falls sharply in response to exogenous tax increases.
Raising taxes causes the GDP to go down! This just proves it.
The problem with this report is it was published in November 2008, before all the recent changes.