Quote:
Originally Posted by spence
There is no explicit correlation between cutting taxes and growth. It is a myth.
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https://www.politico.com/interactive...e-cut-wealthy/
The Congressional Research Service published a paper in 2012 that found no correlation between top tax rates and economic growth. Congressional Republicans protested the findings, and the service briefly withdrew the paper.
Republicans argued that the CRS paper had methodological errors, namely that it didn't account for the long-term benefits of tax rate cuts. The paper looked only at effects on growth within the first year of the cuts.
POLITICO looked at each time the country changed the top income tax rate and the following five years of GDP per capita growth rate. The results are similar to the CRS findings: changing the top income tax rate does not have a predictable effect on economic growth.