"In a seminal contribution, Romer and Romer (2010) (RR henceforth) estimate GDP tax multipliers of up to -3 after 3 … of the RR shock has much smaller effects on GDP than in RR, typically about - .5 percentage points of GDP. I argue that … percentage point of GDP increase in taxes leads to a decline in GDP by about 1.5 percentage points after 3 years. I also create …