Posted on 12/18/2020 5:01:37 AM PST by Oldeconomybuyer
Tax cuts for the wealthy have long drawn support from conservative lawmakers and economists who argue that such measures will "trickle down" and eventually boost jobs and incomes for everyone else. But a new study from the London School of Economics says 50 years of such tax cuts have only helped one group - the rich.
The new paper, examines 18 developed countries - from Australia to the United States - over a 50-year period from 1965 to 2015. The study compared countries that passed tax cuts in a specific year, such as the U.S. in 1982 when President Ronald Reagan slashed taxes on the wealthy, with those that didn't, and then examined their economic outcomes.
Per capita gross domestic product and unemployment rates were nearly identical after five years in countries that slashed taxes on the rich and in those that didn't, the study found.
"Based on our research, we would argue that the economic rationale for keeping taxes on the rich low is weak," Julian Limberg, a co-author of the study and a lecturer in public policy at King's College London, said in an email to CBS MoneyWatch. "In fact, if we look back into history, the period with the highest taxes on the rich - the postwar period - was also a period with high economic growth and low unemployment."
Because the analysis ends in 2015, the research doesn't include President Donald Trump's massive tax overhaul, which he signed into law in late 2017 and which slashed taxes for the rich and corporations while providing a moderate cut for the middle class. But Limberg, who co-authored the study with David Hope, a visiting fellow at the London School of Economics' International Inequalities Institute, said that he wouldn't expect the results of that tax cut to be much different.
(Excerpt) Read more at cbsnews.com ...
CBS new! That saids it all! Chinese Fake News!
90% tax rates will fix everything!!!!
Total inept statement.
50 years. Citation needed.
I wonder if “free trade” and infinity illegal and legal immigration had any impact. Tax cuts “for the rich” probably had minimal impact either way for the middle class.
So get your next job from a poor person.
They must have gotten their economic degree from Scrooge McDuck university where rich people keep all their money in a vault so they can sit and watch it all day. That is fine in comics but not so much in the real world.
In the real world wealthy people invest their money as well as buy expensive things. Their money is used to employ millions of people (and that is the trickle down).
When the tax rate is too high, two things happen, the wealthy find ways to decrease their taxes and the government waste the money they take.
No nation in history has ever taxed them selves into prosperity (read somewhere but forgot where).
Ha! Is that why the US economy exploded during the Trump adm??
Who are you going to believe, them or your lying eyes - and lifestyle.
Notice they only include a very specific set of countries, and during the exact period when the United States Media became the dominant power in the country.
It appears to be just another form of Marxist propaganda.
And I guess that they want us to forget the Reagan economy versus the Carter one.
Interesting that the study left out Kennedy’s tax cuts and Trump’s. Those are the ones that would actually provide the environment for broad stimulus, business and wealth creation. Sounds like the study is pre-planned cover for Biden stupidity.
Ha! Is that why the US economy exploded during the Trump adm??
I can’t imagine how a study from the London School of Economics’ International Inequalities Institute could have come to any other conclusion.
Seemed to work really well under Trump.
Sure it did. We have the wealthiest ‘poor’ on Earth....................
ALL taxes on business owners (the “rich”) is folded into the costs paid by its customers. Businesses never pay any taxes, never have, never will. The products or services contain those taxes that the customer pays.
Guess why tax cuts to the wealthy (business owners) don’t “trickle down” in a virtual classic sense? It’s because they merely reduce the cost of their products or services to become more competitive so you never see a block of cash go anywhere.
Disclaimer: Opinions posted on Free Republic are those of the individual posters and do not necessarily represent the opinion of Free Republic or its management. All materials posted herein are protected by copyright law and the exemption for fair use of copyrighted works.
