Tax cutting does not lead to economic growth--report from the Congressional Research Service

[eridani]

http://washingtonpolicywatch.org/2012/09/18/does-the-data-have-a-liberal-bias-tax-cuts-dont-lead-to-economic-growth/

A new report from the Congressional Research Service (CRS) – Congress’s nonpartisan research arm – touched a nerve among free-market ideologues, who reacted to the wonky policy brief by accusing CRS of partisanship and calling their analysis into question. But politicians from both parties, as well as these same ideologues, often cite CRS data and reports in their own research – so what gives?

The findings of the CRS report are neither surprising nor groundbreaking. Simply put, their analysis finds no evidence to substantiate a relationship between tax cuts and economic growth (either positive or negative), although it does find that lowering the top tax rate is associated with the increasing concentration of income at the top of the income distribution. Those two outcomes are no-brainers: trickle-down economics has already been debunked, and cutting taxes for rich people will, of course, increase their incomes.

But perhaps the hand-wringing among these ideologues can be explained simply by looking at the question posed by the authors:

Advocates of lower tax rates argue that reduced rates would increase economic growth, increase saving and investment, and boost productivity (increase the economic pie)… This report attempts to clarify whether or not there is an association between the tax rates of the highest income taxpayers and economic growth.

[tclambert]

1. Research? They did research? That sounds like science! No Republican will listen to that!

I dismiss your reality, and substitute my own ideological fantasy.

[liberal N proud]

2. The republican response: give the rich another tax cut

[rfranklin]

3. Yes, we just haven't been trying hard enough...

Insanity: doing the same thing over and over again and expecting different results.
Albert Einstein

[valerief]

6. Or another tax loophole. nt

[groundloop]

4. Obviously a left wing study tainted by liberal bias

of course.


Of course there's a point at which too high of a tax rate would hurt the economy, but we're nowhere near that. A government needs to be funded in order to pay for certain basic services (roads, police and fire protection, schools, HEALTHCARE, etc.) If those services are underfunded the economy and general well-being of the citizens will suffer. DUH!!!

[valerief]

5. From the DUH files. nt

[Agony]

7. Pour it ON! "government investment in research and development" invest in people and job growth

"Instead of tax cuts, a more proven form of economic stimulus has been government investment in research and development, which has lead to breakthoughs like the internet, telecommunications, and medical advances – providing millions of jobs and boosting the American economy."

every Democratic representative needs to be shouting this from the rooftops, c'mon get some backbone Democrats!