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Study: Tax Cuts for the Rich Don't Spur Growth
CNBC ^ | 09/17/12 | Robert Frank

Posted on 09/17/2012 4:27:59 PM PDT by sirchtruth

Cutting taxes for the wealthy does not generate faster economic growth, according to a new report. But those cuts may widen the income gap between the rich and the rest, according to a new report.

A study from the Congressional Research Service -- the non-partisan research office for Congress -- shows that "there is little evidence over the past 65 years that tax cuts for the highest earners are associated with savings, investment or productivity growth."

In fact, the study found that higher tax rates for the wealthy are statistically associated with higher levels of growth.

(Excerpt) Read more at finance.yahoo.com ...


TOPICS: News/Current Events
KEYWORDS: poor; taxes; wealthy
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Well then let's just tax the "RICH" into oblivion and we'll all be just fine!
1 posted on 09/17/2012 4:28:05 PM PDT by sirchtruth
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To: sirchtruth
Congressional Research Service -- the non-partisan research office for Congress

Just how "non-partisan" is the CRS?

2 posted on 09/17/2012 4:30:15 PM PDT by sirchtruth (Freedom is not free.)
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To: sirchtruth

Where to begin................


3 posted on 09/17/2012 4:30:38 PM PDT by gdzla
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To: sirchtruth

Yes, despite all common sense and historical precedent, this must be true.


4 posted on 09/17/2012 4:30:53 PM PDT by FoxInSocks ("Hope is not a course of action." -- M. O'Neal, USMC)
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To: sirchtruth

Non partisan - what a crock


5 posted on 09/17/2012 4:31:49 PM PDT by svcw (If one living cell on another planet is life, why isn't it life in the womb?)
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To: sirchtruth

we could also tax the poor out of poverty while we’re at it.


6 posted on 09/17/2012 4:32:39 PM PDT by smoothsailing
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To: sirchtruth
In fact, the study found that higher tax rates for the wealthy are statistically associated with higher levels of growth.

Good grief.

7 posted on 09/17/2012 4:32:55 PM PDT by jwalsh07 (.)
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To: sirchtruth

” A study from the Congressional Research Service — the non-partisan research office for Congress “

ROTFLMFAO


8 posted on 09/17/2012 4:33:17 PM PDT by stephenjohnbanker (God, family, country, mom, apple pie, the girl next door and a Ford F250 to pull my boat.)
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To: sirchtruth

History proves otherwise. Tax cuts for corporations and businesses allows them to reinvest in capital and grow the entire economy. Production=growth=something these hacks obviously have no concept of.


9 posted on 09/17/2012 4:33:17 PM PDT by NoobRep
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To: sirchtruth
The CRS study looked at tax rates and economic growth since 1945. The top tax rate in 1945 was above 90 percent, and fell to 70 percent in the 1960s and to a low of 28 percent in 1986.

How about between 1776 and 1913? No doubt growth was much better with 0% income tax rates than it is today.

10 posted on 09/17/2012 4:34:35 PM PDT by Sooth2222 ("Suppose you were an idiot. And suppose you were a member of congress. But I repeat myself." M.Twain)
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To: sirchtruth

I have a little study called the 1980’s that shows that tax cuts do spur growth and that reducing the size of government and standing up to unions, communists and Muslims can lead to smaller deficits and sustained economic growth and increase security.


11 posted on 09/17/2012 4:34:57 PM PDT by DaveyB (Our Constitution was made only for a moral and religious people. -John Adams)
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To: sirchtruth

Start with Hollywood 95% tax on all income over 250K
and let’s make it retroactive to say 2009. They won’t mind Eva Longoria says she wants to pay more so I say ye shall.
It’s for the Children


12 posted on 09/17/2012 4:35:38 PM PDT by funfan
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To: sirchtruth

This study is silly.

First off, it would be ridiculous to expect tax cuts for the rich to spur BOTH productivity and investment. Indeed, if investment increased (i.e. new factories, facilities, etc.), then you would expect non-technology-related productivity to go down, because more people are being hired, instead of the same smaller number of people being expected to shoulder more and more of an increasing workload (which is what “increased productivity” is often a euphemism for).


13 posted on 09/17/2012 4:36:02 PM PDT by Yashcheritsiy (You can wish in one hand and spit in the other and see which gets filled first.)
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To: sirchtruth

You could ask John F Kennedy


14 posted on 09/17/2012 4:37:05 PM PDT by mo (If you understand, no explanation is needed. If you don't understand, no explanation is possible.)
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To: sirchtruth

It has long (since the 14th Century) been understood that raising taxes on the rich does not increase revenue.

It should be known that at the beginning of a dynasty, taxation yields a large revenue from small assessments. At the end of the dynasty, taxation yields a small revenue from large assessments.
‘Abd-ar-Rah.mân Abû Zayd ibn Khaldûn (1332-1406)’

More recent, See Hauser’s Law


15 posted on 09/17/2012 4:37:41 PM PDT by griswold3 (Big Government does not tolerate rivals.)
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To: sirchtruth

Pure propaganda.


16 posted on 09/17/2012 4:37:58 PM PDT by Fledermaus (Democrats are dangerous and evil. Republicans are just useful idiots.)
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To: jwalsh07

THAT’s where I left my copy of “1984”


17 posted on 09/17/2012 4:38:36 PM PDT by NativeSon ( Grease the floor with Crisco when I dance the Disco)
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To: sirchtruth
<>Cutting taxes for the wealthy does not generate faster economic growth, according to a new report. But those cuts may widen the income gap between the rich and the rest, according to a new report.

Since when is it the purpose of taxation to narrow the gap between the rich and the not? This is where the Marxists always fall flat and show their true colors.

Is the purpose of the tax code to raise revenue or is it to steal from the more well off? Obviously the left believes that latter. And therefore it is unjust (theft) by the very purpose as stated by the leftards

18 posted on 09/17/2012 4:39:01 PM PDT by Ouderkirk (Democrats...the party of Slavery, Segregation, Sodomy, and Sedition)
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To: sirchtruth
This analogy has been used many times, but it's still appropriate. In the story of the three little pigs, the left would take the house made by the industrious hard-working pig, and give it to the lazy pigs who did nothing to help themselves. I honestly feel as though I've wasted my life to this point by working as many hours as I have. What was the point?
19 posted on 09/17/2012 4:39:19 PM PDT by pieceofthepuzzle
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To: sirchtruth

ok, so let me get this straight... according to liberals, taxing cigarettes reduces smoking, taxing gasoline reduces driving, taxing carbon will save the earth but raising income and capital gains taxes has no economic effect ?


20 posted on 09/17/2012 4:39:22 PM PDT by Reverend Wright (you voted for Obama to prove you're not racist, now vote against him to prove you're not stupid...)
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To: mo
You could ask John F Kennedy

Good call!! ;-)

21 posted on 09/17/2012 4:41:05 PM PDT by sirchtruth (Freedom is not free.)
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To: svcw

Bwahahahaha.

Yes, it IS non-partisan in the sense that it’s ignoring the Growth the JFK tax cuts caused right along with the Growth the Reagan tax cuts Caused.

“There has never been a Nation that has taxed itself into prosperity.” Winston Churchill


22 posted on 09/17/2012 4:41:38 PM PDT by To-Whose-Benefit? (It is Error alone which needs the support of Government. The Truth can stand by itself.)
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To: sirchtruth
If you tax ALL income (not just that of the rich) at 100%, we still have a gaping deficit. If taxing everybody at 100% does not solve the problem, taxing the rich at 100% does even less to solve the problem.

A heavily-graduated income tax is plank #2 of the Communist Manifesto, but don't you DARE call them COMMUNISTS.

The Ten Planks of Karl Marx's Communist Manifesto
(and How Statists Implement Them)

  1. Abolition of private property rights (via high property taxes, restrictive zoning laws, "fair housing" edicts, environmental and "wetlands" regulations, UN Agenda 21, etc.)

  2. Institution of a heavily graduated income tax (by calling it "taxing the rich")

  3. Abolition of all rights of inheritance (through a confiscatory estate tax on "the rich")

  4. Confiscation of the property of enemies of the state (through lawless application of asset forfeiture and eminent domain)

  5. Centralization of credit into the hands of the state (Federal Reserve, Federal Trade Commission, TARP, etc.)

  6. Centralization of the means of communication and transportation into the hands of the state (FCC, DOT, FEMA, etc.).

  7. Consolidation and subjugation of all major industries to central government control (FDA, EPA, OSHA, ICC, NLRB, EEOC, etc.)

  8. Mandatory labor union membership (public-sector unions, unionization of 21-million Obamacare health care workers, automatic withholding of forced union dues, "card check," etc.)

  9. Equitable redistribution of all wealth (TANF, SSI, EITC, SNAP, etc.)

  10. Free public education (and food and health care and cell phones and Internet access, etc.)

23 posted on 09/17/2012 4:42:31 PM PDT by E. Pluribus Unum (Government is the religion of the sociopath.)
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To: sirchtruth
...but...but...Why aren't we all rich like we should be if taxes cause wealth.?

We should be pretty well off by now, don't you think?

24 posted on 09/17/2012 4:42:43 PM PDT by Aevery_Freeman (All Y'all White Peoples is racist!)
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To: sirchtruth

Tax cuts for the rich probably don’t spur growth as much as many would like to believe......HOWEVER, that doesn’t mean they’re bad.

If you really want to spur growth, combine those same tax cuts with the elimination of the tax on manufacturing, eliminate the ridiculous regulation on the same, produce cheap energy for industry, pass right to work laws.

Tax cuts for the rich just gives them money to invest elsewhere and who can blame them. Give them a reason to invest in America.


25 posted on 09/17/2012 4:42:56 PM PDT by cripplecreek (What does it profit a man if he gains the whole world but loses his soul?)
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To: sirchtruth
Increasing costs spurs growth... so that's how it works!
26 posted on 09/17/2012 4:45:31 PM PDT by uncommonsense (Conservatives believe what they see; Liberals see what they believe.)
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To: sirchtruth
In fact, the study found that higher tax rates for the wealthy are statistically associated with higher levels of growth.

Is this article a figgin parody?! Everything claimed in this word arranging B.S. is the exact opposite of reality!

Sheer stupidity!

27 posted on 09/17/2012 4:47:52 PM PDT by sirchtruth (Freedom is not free.)
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To: sirchtruth
They also found that water does not cause drowning. And there is no correlation between the wood, bears and doodie.
28 posted on 09/17/2012 4:51:04 PM PDT by jdsteel (Give me freedom, not more government.)
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To: AdmSmith; AnonymousConservative; Berosus; bigheadfred; Bockscar; ColdOne; Convert from ECUSA; ...

Thanks sirchtruth.

American Taxpayer’s Loss on GM Stock Investment Calculator.
http://www.freerepublic.com/focus/news/2932537/posts


29 posted on 09/17/2012 4:52:16 PM PDT by SunkenCiv (https://secure.freerepublic.com/donate/)
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I totally agree with this . We may not like to admit it but most of the wealthy just sit on their money. How many are entrepeuners
30 posted on 09/17/2012 4:54:35 PM PDT by Hones
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To: sirchtruth

Congressional Research Service Wrongly Implies Lower Tax Rates Don’t Strengthen Economy

Curtis DubaySeptember 17, 2012

The Congressional Research Service (CRS) set out to make a convincing case that lower income tax rates do not strengthen the economy. It failed, but in so doing, it called into question the quality of CRS analysis and the institution’s credibility as non-partisan.

The CRS is supposed to provide expert, objective, non-partisan research analysis to Congress. Most of the time, the CRS performs this function admirably and diligently; the longstanding episodic exception has been in tax policy. The most recent example of this partisan divergence is a report setting out to do the impossible: use historical data to argue that lower rates do not encourage stronger economic growth and, by implication, that higher marginal tax rates such as those espoused by President Obama do not discourage economic growth.

The CRS report presents a slew of periods between 1945 and 2010 comparing the top marginal income tax rates and capital gains rates with economic growth rates. From these correlations the author concludes that lower rates do not correlate with stronger economic growth.

In fact, these stylistic correlations prove nothing. In short, the economy is more complicated than this simplistic approach can acknowledge. For the analysis to prove anything, it needed to account for countless other economic and policy factors, many specific to a given period, and determine how those factors influenced economic growth in the period in question. With this as background, the analysis would then have to isolate the effect lower rates had on growth.

http://blog.heritage.org/2012/09/17/congressional-research-service-wrongly-implies-lower-tax-rates-dont-strengthen-economy/


31 posted on 09/17/2012 4:56:48 PM PDT by kcvl
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To: sirchtruth
What this argument fails to incorporate is that it isn't a matter of whose wealth is taxed. It is a matter of pulling capital out of an economy.

The rich don't put their wealth in their mattresses...it is reinvested with or lent to others.

So when taxes are increased on the so-called rich, the rich don't suffer. The capital to pay for the taxes is taken from those who want to borrow it or from those whose projects need it as investment.

As a Socialist/Communist/Collectivist, Obama doesn't understand this. His is a linear world in which he must take away from some to give to others. Obama wants the wealthy to suffer so that the poor can thrive. That never happens, but that false concept of "fairness" is dominant in Communism.

Communism doesn't work because it ignores the human desire to create. Communism doesn't work because it destroys the human desire and will to create.

Communism is a war on creativity and invention...it is a war on individual humanity.

Communism is a hive mentality!

32 posted on 09/17/2012 4:59:50 PM PDT by RoosterRedux (Obama: "If you've got a business -- you didn't build that. Somebody else made that happen.")
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To: sirchtruth
First of all, where in the history of the United States was there a tax cut just for the rich? An a priori test of what's being jokingly referred to as research can't even form a testable hypothesis due to the compound effects of tax cuts at other brackets. Looking at savings rates in isolation is also a joke, since it is additional demand for goods and services associated with a tax cut that spurs growth, not increased savings. (The assumption, I guess, is that increased savings leads to more capital formation. This does no good unless that new capital is plowed back into the system as investment, and that only occurs if demand is rising. What fool invests in plant and equipment when he has 40% idle capacity as it is?) If I had any of these clowns in my econ class, they'd have to retake the course before I'd unleash them on the next econ course.
33 posted on 09/17/2012 5:03:30 PM PDT by econjack (Some people are as dumb as soup.)
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To: 103198

mark...


34 posted on 09/17/2012 5:13:04 PM PDT by 103198
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To: Hones
I totally agree with this . We may not like to admit it but most of the wealthy just sit on their money. How many are entrepeuners

Would you like an economics lesson because I'm sure one will be provided on this thread soon enough...Like maybe post#31.

Who do you think the "wealthy" are in this country?

35 posted on 09/17/2012 5:17:04 PM PDT by sirchtruth (Freedom is not free.)
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To: Reverend Wright
ok, so let me get this straight... according to liberals, taxing cigarettes reduces smoking, taxing gasoline reduces driving, taxing carbon will save the earth but raising income and capital gains taxes has no economic effect ?

Government taxes what it wants to stop or get rid of. Makes sense. /sarc
36 posted on 09/17/2012 5:38:21 PM PDT by PieterCasparzen (We have to fix things ourselves.)
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To: sirchtruth
I see..

BAD=Letting the rich keep their own money

GOOD=Giving the rich people's money to the government

37 posted on 09/17/2012 5:55:36 PM PDT by evad (Deception & Lying. It's what they do.. It's ALL they do... And they won't stop.. EVER!!)
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To: griswold3

The two years with the largest amount of income taken from citizens by U.S. taxing authorities are 2000, and 2007 at just below 37%. Following each year the country experienced a recession.


38 posted on 09/17/2012 5:58:26 PM PDT by ALPAPilot
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To: All

39 posted on 09/17/2012 6:00:48 PM PDT by musicman (Until I see the REAL Long Form Vault BC, he's just "PRES__ENT" Obama = Without "ID")
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To: sirchtruth

So much for the Kennedy and Reagan tax cuts.

Must have been a right-wing fantasy.


40 posted on 09/17/2012 6:05:42 PM PDT by <1/1,000,000th%
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To: sirchtruth

But the Bush tax cuts were for everyone.


41 posted on 09/17/2012 6:11:01 PM PDT by Raycpa
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To: sirchtruth

IT WORKS EVERYTIME IT IS TRIED... UNLIKE keynesian economics WHICH FAILS EVERYTIME IT IS TRIED. This is a non partisan group just like NBC, CBS and ABC are non partisan and unbiased.

LLS


42 posted on 09/17/2012 6:18:08 PM PDT by LibLieSlayer ("if it looks like you are not gonna make it you gotta get mean, I mean plumb mad-dog mean" J. Wales)
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Comment #43 Removed by Moderator

To: sirchtruth

Hauser’s Law shows that tax revenue as per cent of GDP is virtually constant at 19% regardless of the highest marginal tax rate. Even the 90% rates on the highest tax bracket in the 1950s, tax revenue was still just 19% of GDP. To increase tax revenue it is necessary to grow the GDP.
.


44 posted on 09/17/2012 6:25:57 PM PDT by The Great RJ
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To: freewild
Crunch some numbers (or do some reading) and you’ll find there are optimal levels of taxation for growth...Step out of the echo chamber and talk to somebody who’s done the work.

Well, show us Sherlock since you're making the claim! You know good and well there is solid evidence against this B.S. research MSM report by the CRS.

45 posted on 09/17/2012 6:27:33 PM PDT by sirchtruth (Freedom is not free.)
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To: Reverend Wright

The Left has a number of serious delusions which drastically affect their perception of reality. The idea that taxes have inelastic effects is just one of them.


46 posted on 09/17/2012 6:53:03 PM PDT by drbuzzard (All animals are created equal, but some are more equal than others.)
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To: ALPAPilot

The US taxing authorities mistakenly believe that tax increases will simply be followed.
Thus the call for ‘Tax Reform’, where the ultimate goal is to increase revenue. They need an office of Unintended Consequences.


47 posted on 09/17/2012 7:47:32 PM PDT by griswold3 (Big Government does not tolerate rivals.)
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To: sirchtruth

Tax rates when it was 70% doesn’t equate to taxes paid. Only to study rates is illogical.


48 posted on 09/17/2012 7:56:28 PM PDT by pacpam (action=consequence and applies in all cases - friend of victory)
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To: Hones

Speaking of entrepreneurs....
Here’s a little expose on the Obama administration’s effect on our main driver of growth and jobs....

http://www.hudson.org/index.cfm?fuseaction=publication_details&id=9252

New Study: Startup Job Creation Collapses Share on facebookShare on google_plusoneShare on facebook_likePress Release

September 13, 2012
by Hudson Institute

WASHINGTON—Data from the U.S. Department of Commerce indicates a continued and accelerating collapse of startup job creation in recent years. A new economic policy briefing paper from Hudson Institute, The Collapse of Startups in Job Creation, takes a close look at this troubling trend and concludes that entrepreneurship in the United States is in a parlous state.


49 posted on 09/17/2012 8:02:04 PM PDT by griswold3 (Big Government does not tolerate rivals.)
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To: sirchtruth
Tax Cuts for the Rich Don't Spur Growth...and increasing taxes on them does what?......
50 posted on 09/17/2012 9:52:58 PM PDT by Intolerant in NJ
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