Study: Tax Cuts for the Rich Don't Spur Growth

[improved]

Cutting taxes for the wealthy does not generate faster economic growth, according to a new report. But those cuts may widen the income gap between the rich and the rest, according to a new report.A study from the Congressional Research Service -- the non-partisan research office for Congress -- shows that "there is little evidence over the past 65

Comments

[schexyschteve]

Also, could you freaking imagine? "The top tax rate in 1945 was above 90 percent"

[maynardsong]

I'm not actually in favor of 90% but shit, we need additional marginal rates for incomes over 250K. There ought to be an additional bracket at the 500K and million marks, and capital gains needs to be way higher.

[bushy_brow]

Yeah, but IIRC no one ever actually paid that much.

Yeah, they didn't. A rate that high gave business owners and the wealthy a hell of an incentive to invest their profits -- in expanding their businesses, into pensions, refitting factories, training/retraining workers, etc., etc. -- and THAT grew the economy liek whoa.

[bushy_brow]

Yeah. I can't help wondering, though, how their political contributions would stack up against the hypothetical amounts of more taxes they would pay, yanno?

[awfulbliss]

Do you have data showing that proft re-investing differs depending on the tax rate?

[bushy_brow]

Nah, just what I heard from my parents and grandparents. I wouldn't even know where to look.