Parents with more children prefer higher taxes, impacting household spending.
The study looked at how family size affects people's views on taxes. Families with more kids tend to prefer higher taxes, while those with fewer kids prefer lower taxes. This is because larger families are more likely to support reducing government debt. When looking at the whole population, tax cuts lead to increased spending, especially for families with many children. The researchers used data from surveys to confirm that parents with more kids do indeed prefer higher taxes. This shows that family size differences can explain why some households act like Ricardian savers while overall, tax cuts lead to more spending.