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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

confiscatory taxation is theft. In a rational country, even the rich have a natural right to private property


61 posted on 12/18/2020 6:36:07 AM PST by mjp ((pro-{God, reality, reason, egoism, individualism, natural rights, limited government, capitalism}))
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To: MrRelevant

“...The facts do not lie... Trump’s tax cuts trickled down into every economic metric in a positive fashion...as advertised....”

Yep. It created a juggernaut of an economy that unless stopped, guaranteed the man’s re-election. The communists had to pull out all the stops to kill it any way possible. Thus, they likely colluded with the CCP on the Fauxi-engineered, planned virus release. That killed our economy, thousands of people, then they went full bore of ballot fraud to take him completely just to gain back power. I outright despise the corrupt bassturds for it. There are a lot of folks that need to be hanged...publicly.


62 posted on 12/18/2020 6:40:01 AM PST by lgjhn23 (Libs are a virus.....the DemoVirus!!)
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To: cdcdawg

I think you hit the nail on the head, the big lie of “free trade” was a devastating hit on the American middle class. I am all for truly free trade but we have never had that just Americans taking in in the ass as we were sold out by both parties.

Tax cuts work if government will stay out of the way except and not pick sides when businesses compete. If tax increases work so well how come we were not at 3% GDP in the obama years?


63 posted on 12/18/2020 6:41:04 AM PST by sarge83
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To: Oldeconomybuyer

Another bon mot from the LSE.

Surprise, surprise.


64 posted on 12/18/2020 6:52:04 AM PST by sauropod (Cui bono? I will not comply.)
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To: Oldeconomybuyer

This is the problem with publicly-traded corporations—they orient every financial decision towards shareholders and executive compensation, while wages either stagnate or shrink in relation to cost of living; but they spend megabucks on advertising some BS “corporate caring” program that extorts from the consumer to benefit a few and provide a tax write-off.

It’s a problem of ethics.


65 posted on 12/18/2020 7:00:21 AM PST by Albion Wilde ("When you open your heart to patriotism, there is no room for prejudice." --Donald Trump)
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To: Oldeconomybuyer

10 years old and it still rings true.

https://youtu.be/d0nERTFo-Sk

(Yeah...You Tube, but it’s not on Rumble)


66 posted on 12/18/2020 7:06:45 AM PST by jdsteel (Americans are Dreamers too!!!)
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To: LoveMyFreedom

If there’s a scintilla of truth in this, then it is more a reflection of the skill set and behavior of those at the bottom of the income chart than it is of capitalism and low tax rates.

The failure to consider human nature is the major problem of these starry-eyed leftist social engineers and their never-ending plans to legislate Utopia for all.


67 posted on 12/18/2020 7:19:54 AM PST by awelliott (What one generation tolerates, the next embraces....)
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To: Oldeconomybuyer

Re: 1982 Reagan tax cut

Two observations...

(1) Since 1982, we have imported 60 million Third World immigrants and their American born children.

(2) Half of the USA working age population receive more government benefits than they pay in taxes.


68 posted on 12/18/2020 7:26:08 AM PST by zeestephen
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To: Oldeconomybuyer
It's because of greed at the top.

Billionaire Bezos' Amazon warehouse employees depend on food stamps in 9 states

The U.S. laws allowing incorporation and public shareholding were probably a good idea at the time, but these huge corporations have become a major distortion of purpose. The leaders of companies whose executives are multi-billionaires and can literally buy an election have no conscience.

There used to be an informal rule of thumb that a corporate president should make no more than 6 times the salary of the lowest-paid employee. Now look, with executive yearly compensation in the millions, and their stock portfolios increasing on top of that; one-sixth of only one million dollars is around $167,000. What janitor or warehouse clerk gets paid anywhere near that?

As John Adams pointed out at our Founding, “Our Constitution was made only for a moral and religious people. It is wholly inadequate to the government of any other.”

69 posted on 12/18/2020 7:32:57 AM PST by Albion Wilde ("When you open your heart to patriotism, there is no room for prejudice." --Donald Trump)
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To: Oldeconomybuyer

Dang I can’t find anything in the CBS story that proves socialism in working any place in the world.


70 posted on 12/18/2020 8:52:37 AM PST by Vaduz (women and children to be impacIQ of chimpsted the most.)
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To: Oldeconomybuyer
period from 1965 to 2015.
Isn’t that cute! They pick a nice, round 50-year interval ending before the current administration. No cherry picking there! No sir!

Of course 1965 came immediately after the famous Kenndy tax cuts, and 2015 immediately before the Trump tax cuts. But we had blindfolds on when we picked that ’65 - ’15 interval using a dart board. Honest!


71 posted on 12/18/2020 11:57:17 AM PST by conservatism_IS_compassion (Socialism is cynicism directed towards society and - correspondingly - naivete towards government.)
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