Tax Free Weekends, which are offered in my area to help people out with school supplies and clothes, are proof that taxation dampens the economy. As soon as the restrictions are lifted people go out in droves to spend their money. Now you may say that this is unsustained growth but I would say to you that people will spend money if they have it and they would have it if it wasn't being taken by the government and wasted. This would show increased demand and would recquire a boost in supply which means job growth. Taxations skews the normal supply/demand cycle and inhibits the free market. If you want to help poor people help them get jobs by putting money back where it will do the most good...in the hands of the people.