Skip to content
February 28, 2013 / needhamgrassroots

Study: Higher Taxes on the Wealthy Do Not Hurt the Economy

money-bagsFrom Center for American Progress — The economic report, “Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945,” “found no correlation between top tax rates and economic growth.” This means that increasing taxes on the wealthiest Americans would not actually harm the economy in the way congressional Republicans have been asserting. …

The right’s argument has always been a simple one: Tax rates on the wealthy must be kept low in order to inspire investment and promote economic growth. Whether this leads to greater inequality is not relevant, as inequality per se is not a problem in the conservative mind—it is merely a fair and accurate reflection of talent and initiative. And in the context of the debate, this argument has always been taken as a matter of faith. As Senate Minority Leader Mitch McConnell (R-KY) told one reporter in July 2010, “There’s no evidence whatsoever that the Bush tax cuts actually diminished revenue. They increased revenue because of the vibrancy of these tax cuts in the economy.”

It has always been difficult to find a genuine economist, even a conservative economist, who would buy into the theory that reducing taxes on the wealthy actually increases revenue. Because it is merely a theory, though, it was difficult to disprove—until now. The evidence doesn’t support it—and all the legislation that has been passed on the basis of this argument has been mistaken. Mistaken too is the right-wing refusal to agree to almost any form of revenue increase in order to avoid the catastrophic coming of the automatic across-the-board spending cuts known as the sequester.

Then again, it is at least possible that the theory was less of a mistake than a smokescreen. For if the Republicans were genuinely interested in the goals they profess to be pursuing—that is, greater economic growth for all—it’s unlikely that they would be so eager to quash the evidence when it fails to support their initial assumptions, instead seeking to alter their theory to get to their end goal.

But do you remember former Vice President Dick Cheney’s explanation to then-Commerce Secretary Paul O’Neill as to why the Bush administration was pursuing its tax cuts for the wealthy despite the dangers these cuts posed to America’s fiscal health? “We won the midterms. This is our due.”

FROM: Republicans Ignore the Evidence About Higher Taxes on the Wealthy | Center for American Progress – (2/28/2013) http://s.shr.lc/ZDJdS1

READ MORE:

Advertisements

Leave a Reply

Fill in your details below or click an icon to log in:

WordPress.com Logo

You are commenting using your WordPress.com account. Log Out / Change )

Twitter picture

You are commenting using your Twitter account. Log Out / Change )

Facebook photo

You are commenting using your Facebook account. Log Out / Change )

Google+ photo

You are commenting using your Google+ account. Log Out / Change )

Connecting to %s

%d bloggers like this: