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50 years of tax cuts for the rich failed to trickle down, economics study says
CBS "News" ^ | December 17, 2020 | BY AIMEE PICCHI

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 ...


TOPICS: Business/Economy; Constitution/Conservatism; News/Current Events; Politics/Elections
KEYWORDS: bias; journalism; media; press
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To: Oldeconomybuyer

Comparing different countries. Was there a comparison of each country before and after tax cuts or increases? Playing games with statistics.


41 posted on 12/18/2020 5:34:10 AM PST by djpg
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To: Oldeconomybuyer

The trickle down consists mainly of low unemployment rate.


42 posted on 12/18/2020 5:35:12 AM PST by cymbeline
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To: SMARTY

A “good” economy is irrelevant to the elites which are insulated from devastating down trends in the economy, employment and GDP. They don’t care, they are on a mission to recreate society. GDP; Shmee Dee Peee


43 posted on 12/18/2020 5:37:25 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
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To: Oldeconomybuyer
I’m sure that 50 years of importing larglely illiterate, unskilled, and often criminal, illegal aliens, and calling them citizens, had nothing to do with it.

And I’m sure that 50 years of increasing government corruption, tyranny, expansion, profligate spending, and associated increases in taxes flowing through said government, had nothing to do with it.

44 posted on 12/18/2020 5:39:18 AM PST by Sicon ("All animals are equal, but some animals are more equal than others." - G. Orwell)
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To: Don Corleone
How many workers are hired by poor people???

Watch a show called "My 600# life". Who pays for all those visits to Dr Nowzaradan? Who pays for the surgery and hospital visits? It takes 10 paramedics to move them, who pays? Who pays for the apartments in Houston? Who pays for all the food these immobile human pigs eat?

45 posted on 12/18/2020 5:43:04 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
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To: Oldeconomybuyer

Even if it were true, that’s why you need tax cuts for EVERYONE.


46 posted on 12/18/2020 5:44:54 AM PST by metmom (...fixing our eyes on Jesus, the Author and Perfecter of our faith.....)
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To: 2banana

“90% tax rates will fix everything!!!!”

Tax the rich and they stop buying things. That causes companies to scale back, meaning people are getting fired. Those people are no longer the beneficiaries of consumerism and either must find new jobs or become recipients of government funding.

Which is the reason tax rates were increased in the first place. London School of Economics? That’s funny. Economics 101 tells us this. And if they wanted to do a case study on this, all they need to do is look at the boating industry.


47 posted on 12/18/2020 5:49:19 AM PST by EQAndyBuzz (RELEASE THE BRACKEN! I)
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To: Oldeconomybuyer

Where’s the picture of Goebbels?


48 posted on 12/18/2020 5:51:24 AM PST by CheneyClone
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To: LoveMyFreedom

Yes CBS News is XiBS News.


49 posted on 12/18/2020 5:56:40 AM PST by poconopundit (Hard oak fist in an Irish velvet glove: Kayleigh the Shillelagh we salute your work!)
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To: Oldeconomybuyer

im pretty sure most of those poor folk have a cell phone, large flat screen, etc, so some did trickle down..


50 posted on 12/18/2020 5:58:22 AM PST by ßuddaßudd ((>> M A G A << "What the hell kind of country is this if I can only hate a man if he's white?")
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To: central_va

That’s right of course. Our ‘government’ is unaccountable, detached, disinterested and wholly inimical and out-of-touch with America and Americans. The US ‘government’ is, by now, an alien and dangerous cult unto itself.

The people and organizations they create, have their own greedy, venal, unprincipled agenda and methods.

It’s just like we NEVER had our revolution to throw off the British monarchy. THEY were just the same in their attitude and regard for Americans. We have once again become tax slaves.


51 posted on 12/18/2020 6:00:01 AM PST by SMARTY (“If you have ten thousand regulations, you destroy all respect for the law.” Winston Churchill)
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To: SMARTY
There are Tories in our midst once again. I would say 30% of R's will never be in favor of the radical changes that need to occur.

The word "freedom" is seldom used anymore. It's about freedom.

52 posted on 12/18/2020 6:02:39 AM PST by central_va (I won't be reconstructed and I do not give a damn...)
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To: Oldeconomybuyer

The “rich” or large corporate entities that employ millions of Americans? Perhaps its the interruption of this process each time a democrat takes office that rolls back progress? The facts do not lik... Trumps tax cuts trickled down into every economic metric in a positive fashion...as advertised.


53 posted on 12/18/2020 6:02:47 AM PST by MrRelevant
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To: Oldeconomybuyer
Tax cuts are awesome. But, the proper order of slashing .gov and reducing spending didn't occur. As of now, we have created massive debt and enlarged .gov. That can't work.

We have created a illusion of prosperity. The illusion will harm the future. Higher taxes and less growth are a given to pay the credit card bills that the past and present ran up.

54 posted on 12/18/2020 6:03:24 AM PST by Theoria (I should never have surrendered. I should have fought until I was the last man alive)
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To: Oldeconomybuyer

The federal tax cuts’ widespread economic benefits were lessened by socialistic state policies, environmental extremism, and poverty-increasing social policies (wrong immigrants, bad schools, drugs, crime, etc.).


55 posted on 12/18/2020 6:18:32 AM PST by Socon-Econ (adical Islam, )
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To: 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.


So, start with a lie, and then move forward into others.


56 posted on 12/18/2020 6:22:21 AM PST by lepton ("It is useless to attempt to reason a man out of a thing he was never reasoned into"--Jonathan Swift)
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To: OttawaFreeper

I get reminders on the Jimmuh years on Real People reruns on Roku.

Every so often I watch a few episodes.

Most of Roku viewing is reruns of Sweating Bullets, vintage Mission Impossible, classic Dr. Who, Time Trax, and MST3K.


57 posted on 12/18/2020 6:25:31 AM PST by wally_bert (I cannot be sure for certain, but in my personal opinion I am certain that I am not sure.)
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To: Oldeconomybuyer
50 years of tax cuts for the rich failed to trickle down, economics study says...

Not if you like to work, Aimee...

58 posted on 12/18/2020 6:29:41 AM PST by PerConPat (A politician is an animal that can sit on a fence and yet keep both ears to the ground--Mencken )
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To: Oldeconomybuyer

50 years of fixing the conditions for Blacks by the Dems and it supposedly hasn’t gotten better.


59 posted on 12/18/2020 6:30:54 AM PST by 1Old Pro ( )
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To: Oldeconomybuyer
I see a lot of “poor” living in houses and driving cars that “poor” could not possibly have afforded fifty years ago.

Something trickled down - if if it was largely debt.

60 posted on 12/18/2020 6:31:57 AM PST by Mr. Jeeves ([CTRL]-[GALT]-[DELETE])
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