You really don't need a study from Harvard to get data on this. If you don't get it because of a lack of business experience, go talk to your local high-school-educated baker, mechanic or gas-station owner for a quick round-down.
The evidence is overwhelming. Yet, we keep dicking around and supporting policies, politicians and people who somehow think they can violate the laws of physics and make things better by shafting everyone with more taxes.
When are we going to learn and act? When it is too late?
I owned a manufacturing business for nearly a decade. We designed and assembled electronics, embedded systems, FPGA's, lots of code. Hell, we even had a full-blown CNC shop with the latest equipment. As an engineer it was fun to go to the office. As a business person, it was painful.
Example: One day this guy from the County of Los Angeles Business Property Tax department shows up in our industrial area going from door to door. The guy comes into our office and informs us that he was there to confirm how much we owned in business property taxes. I told him that we leased the 10,000 square foot building. We didn't own it. He then says: "Do you own desks, computers, tools, machinery, fax machines, chairs...?". Sure. "Well, you have to pay the County of L.A. taxes on these and other items". The only thing that I could say to him was "You have to be fucking joking! I have to pay you taxes on my desks and chairs, forever? Why?"
Think I am making this up? Here:
http://lacountypropertytax.com/portal/contactus/ppa.aspx
Being in manufacturing during the last several years has been a very painful experience. The supply chain is royally fucked. A lot of what you have to source you just can't get in the US any more. More an more suppliers are closing their doors every day. It's painful, difficult and you are getting killed by product coming from China.
I won't go into the details that led to my decision to abandon hardware/electronics manufacturing. I, ultimately, decided that it was a far better idea to transform into a software-only enterprise and move away from making real physical goods.
Because what we made involved everything from electronics, FPGA's, embedded, web and workstation software it really wasn't too difficult to shed the hardware portion of things and stick to software. I pains me because I love making things, but we, in the US, have somehow managed to FUBAR our system to such an extent that people like me have to say "fuck it" and move on.
If you continue voting for policies that promote higher taxation and regulation, more government involvement and government programs you are going to get exactly the country you are voting for: A third world mess with rats jumping ship faster than humans. Mark my words. Think about it.
What cracks me up is that you guys are arguing percentages and technicalities. Coming from my side of the table reading this would be funny if it wasn't so tragic. Go make something. Then come back and re-read your comments to see what they sound like.