Tax Cuts For The Rich Do Not Spur Economic Growth: Study

[SunsetDreams]

There is no clear correlation between tax cuts for high earners and economic growth, according to a new study by Congress’ nonpartisan policy analyst. http://tpmdc.talkingpointsmemo.com/PDF/0915taxesandeconomy.pdf

“There is not conclusive evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the top tax rates and economic growth,” concluded a report by the Congressional Research Service released Friday. “Analysis of such data suggests the reduction in the top tax rates have had little association with saving, investment, or productivity growth.”

The findings are pertinent to a central debate in the presidential election, wherein President Obama is pushing to end the Bush-era tax cuts on high incomes, while his Republican challenger Mitt Romney insists on cutting rates across the board 20 percent below current policy. Democrats contrast the tax hikes of the 1990s and ensuing economic growth with the tax cuts of the 2000s and relatively meager gains that followed. Republicans, meanwhile, argue that the recovery is weak because the economy remains shackled by regulatory and tax burdens.

The study delves into the last 65 years of U.S. tax policy pertaining to high earning Americans — including top marginal rates on income and capital gains taxes — and how it impacts their decision-making. The conclusion: cutting effective taxes on the rich doesn’t boost economic growth, but it does correlate with rising income inequality.

http://tpmdc.talkingpointsmemo.com/2012/09/crs-study-taxes-economic-growth.php?ref=fpa


So not only is Romney's tax cut for the rich not going to trickle down, he is also going to really stick it to you in order to pay for the tax favors to his buddies and himself.


Study: Romney Plan Would Raise Taxes On 95% Of Americans
http://2012.talkingpointsmemo.com/2012/08/study-romney-plan-would-raise-taxes-on-95-of-americans.php

[Initech]

1. Always more for them and less for us. The rich criminals get it all and we get nothing.

I'm beginning to see why the French revolted...

[librechik]

2. yeah, but those are facts. You can't ask those people to be ruled by facts.

They just won't. They have their own wrong reality that they are gangbusters determined to force on us, despite the facts. And apparently that drive is a real votegetter for the morons who still believe in trickledown.