Tax Cuts Don't Lead to Economic Growth, a New 65-Year Study Finds

[Riot]

The entire false basis of modern Republican public financial policy, the famously invalid "Trickle Down" economic theory, the myth of "job creators need tax breaks to grow the economy", finally put to rest in a nice way.

Not that anybody but Republicans thought that baloney worked, as it's been obvious it has not (if tax cuts worked, W. Bush's economy would be an economic engine of unparalled drive, rather than a massive recession/almost depression. Reagan famously and repeatedly raised taxes to save the economy)

Tax Cuts Don't Lead to Economic Growth, a New 65-Year Study Finds

http://www.theatlantic.com/business/...-finds/262438/

A taste:

[Danzig]

i wonder who paid for the study.
but then, i wonder why it's a thread-been showing for weeks now in other threads about all this.
but hey, i'm glad to know i was right.

[Clip-Clop]

Originally Posted by Danzig

i wonder who paid for the study.
but then, i wonder why it's a thread-been showing for weeks now in other threads about all this.
but hey, i'm glad to know i was right.

have you seen the "pirates cause global warming" theory?

[Riot]

Originally Posted by Danzig

i wonder who paid for the study.

Why, you could click on the link, and see the answer. And, you could read the summary, which reveals a rather important association that you would probably find more interesting.

but then, i wonder why it's a thread-been showing for weeks now in other threads about all this.

It's a thread because this is a new, in-depth study that was just published/released 2 days ago.

but hey, i'm glad to know i was right.

Good for you! We're glad you've finally come around to the dark side of Kenyesian economics!

[Danzig]

Originally Posted by Clip-Clop

have you seen the "pirates cause global warming" theory?

yeah man. i've posted that chart a couple times, and used it as an avatar before. i love it.

[Clip-Clop]

Originally Posted by Danzig

yeah man. i've posted that chart a couple times, and used it as an avatar before. i love it.

I have a buddy who always says the weatherman in San Diego isn't a better weatherman just because it is nice out.

[Thepaindispenser]

We don't live in a vacuum, tax cuts and increases are just one of many factors that need to be taken in context. Clinton's growth was an Internet bubble economy. Something tells me the bursting of the internet fake economy bubble, 9/11, and the housing crisis had a lot more to do with the declining economy than tax cuts. That chart only goes back to 1990. What about JFK's and Reagan's tax cuts? What about that today's economy is a true global economy that has never been seen before where capital and labor can easily be shifted to tax friendlier nations? How does raising taxes stimulate growth?

[Danzig]

Originally Posted by Thepaindispenser

We don't live in a vacuum, tax cuts and increases are just one of many factors that need to be taken in context. Clinton's growth was an Internet bubble economy. Something tells me the bursting of the internet fake economy bubble, 9/11, and the housing crisis had a lot more to do with the declining economy than tax cuts. That chart only goes back to 1990. What about JFK's and Reagan's tax cuts? What about that today's economy is a true global economy that has never been seen before where capital and labor can easily be shifted to tax friendlier nations? How does raising taxes stimulate growth?

i didn't read the study...but i do know that as taxes have decreased for the wealthy over the years, job growth has also suffered. the wealthiest are paying less in taxes than any time in the last 80 years-kind of disproves the trickle down theory.
think about it. your amount of money grows, your taxes are lower-so who needs tax shelters? no cost to you if you let your money just sit and grow. used to be those with money would use it and put it to work-no incentive for that now.

[Thepaindispenser]

Originally Posted by Danzig

i didn't read the study...but i do know that as taxes have decreased for the wealthy over the years, job growth has also suffered. the wealthiest are paying less in taxes than any time in the last 80 years-kind of disproves the trickle down theory.
think about it. your amount of money grows, your taxes are lower-so who needs tax shelters? no cost to you if you let your money just sit and grow. used to be those with money would use it and put it to work-no incentive for that now.

To me it is difficult comparing tax rates from the 1940's and 1950's to today as we were paying down war debt but more importantly after the devastation of World War II in Europe and Asia, socialists winning all over Western Europe, and communism taking over Eastern Europe and China, despite high US tax rates, we were the only game in town as our infrastructure was the only one left from industrial countries that was still intact. You either manufactured in the US and paid high tax rates or you did nothing.

I don't think trickle down applies in today's world as jobs and investments can easily be shifted to almost any where in the world, especially to those with tax friendlier environments. We have the highest corporate tax rates in the world and real unemployment over 11%.

I definitely don't think raising tax rates to give a bunch of corrupt, elitist politicians more money to give to their big donor pals, especially corrupt public sector unions.

[Danzig]

Originally Posted by Thepaindispenser

To me it is difficult comparing tax rates from the 1940's and 1950's to today as we were paying down war debt but more importantly after the devastation of World War II in Europe and Asia, socialists winning all over Western Europe, and communism taking over Eastern Europe and China, despite high US tax rates, we were the only game in town as our infrastructure was the only one left from industrial countries that was still intact. You either manufactured in the US and paid high tax rates or you did nothing.

I don't think trickle down applies in today's world as jobs and investments can easily be shifted to almost any where in the world, especially to those with tax friendlier environments. We have the highest corporate tax rates in the world and real unemployment over 11%.

I definitely don't think raising tax rates to give a bunch of corrupt, elitist politicians more money to give to their big donor pals, especially corrupt public sector unions.

when bush passed his tax cuts, it was supposed to deliver job growth. hasn't happened. the cuts didn't do anything they were billed to do, except grow the deficit. lowering tax rates, again, for the wealthy didn't do a thing to get them to grow jobs-why would it? you must give the wealthy incentives to spend, not hold, their money. lowering taxes isn't going to induce them to shelter their money anywhere but in their own pockets.

and go back to what tax rates were around ww1-much higher than now also. it's amazing the difference between now, and previous decades.

[Danzig]

http://www.slate.com/articles/busine..._revenues.html


i believe i posted the above at some point in the past. still a good article.

[Thepaindispenser]

Raising tax rates encourages people to shift money into tax shelters but more importantly in today's global economy more of it goes abroad.

Also there reaches a point where an increase in tax rates raises less revenue.

The wealthy already pay most of the taxes in this country.

The one thing I think we would agree on is closing the tax loop holes created by lobbyists bribing corrupt politicians to benefit certain businesses.

[Thepaindispenser]

http://dailycaller.com/2012/08/28/ms...by-a-minority/

Great article by a very smart person that pokes many holes in the above chart and study. I find JFK's comments on taxes very interesting.

[joeydb]

Originally Posted by Thepaindispenser

Raising tax rates encourages people to shift money into tax shelters but more importantly in today's global economy more of it goes abroad.

Also there reaches a point where an increase in tax rates raises less revenue.

The wealthy already pay most of the taxes in this country.

The one thing I think we would agree on is closing the tax loop holes created by lobbyists bribing corrupt politicians to benefit certain businesses.

Look up "The Laffer curve." Of course raising tax rates at some point produces less revenue. It has to. A few of the reasons:

Smart people are very motivated to hold on to more of their money. They don't want their "silent partner" of the Federal Government to enjoy trouble-free income at the expense of their sweat.

If they can't find a way to keep more of their money, and if their profits are reduced, they will work LESS or produce LESS and at least recup their time or energy.

Or if they are really put up against it by the taxes, they will close the business and do something else for a living, or retire early, or go on some form of assistance in the hopes that things will get better later. All of these responses give less tax revenue to the government and in fact increase expenses where aid from the government is necessary.