October 6, 2012

CRS: lower tax rates appear to create greater income disparity. Do not create jobs or GDP growth.

From the Congressional Research Service:

However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution. The share of income accruing to the top 0.1% of U.S. families increased from 4.2% in 1945 to 12.3% by 2007 before falling to 9.2% due to the 2007-2009 recession.

SO the tax breaks for the rich didnt create jobs and did put more money in the pockets of the 1%, or actually the top .3%, er ah top .1%..... Heres the pdf

http://graphics8.nytimes.com/news/business/0915taxesandeconomy.pdf

From concluding remarks

Tax policy could have a relation to how the economic pie is sliced—lower top tax rates may be associated with greater income disparities.