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 ...
Yes! Saved money is invested money in the modern economy, like it or not.
There is NO WAY TO KNOW that.
It’s an idealogical belief, and a hypothesis. Nothing more.
The only way to know for sure would be to go back into a time machine and get Carter re-elected in 1980, and then keep it going.
In this day and age of “global economies”, you simply can’t except wealthy people, but rich corporations in particular, to stay anywhere that is punitive to their bottom line.
The United States started losing jobs to Japan in the 60s and 70s, and not just the jobs, but the profits from production. This meant that I standard of living as well as our GDP started getting siffoned off.
Globalism is the problem, not tax policy.
If our economy was much better protected, including heavy tariffs on foreign products that compete with domestic products using inequitable labor rates, and corporations couldn’t bail on us and still export products to us, and if the wealthy couldn’t find better havens, then I would say, go for it, soak them a little bit more.
So what about the industries and jobs created that never would have existed without the rich spending their money on luxury items ( homes, yachts, cars, etc.)? Capitalism serves the needs of individuals much better than any other system. Trouble is, too many people confuse wants with needs. Needs are basic to survival and growth of the individual while wants are created by envy and advertising.
Absurd.
Dear CBS,
Explain how the freest countries in the world have the highest standards of living. Explain also how the poor in our country live better than 95% of the rest of the world.
I’ll wait...
LSE study.
More foreign interference.
People living in poverty in the U.S. have a standard of living that would be the envy of most people in the world. Im many parts of the U.S., the typical poor person is a fat slob with an iPhone. Just think about that for a moment.
You know you live in a wealthy country when people come to pick up food from the food bank in cars. And the Toys for Tots program hands people toys through a car window.
I’ve benefited a lot by working. As opposed to being filthy dirt poor, living in a matchbox, and running out of food every month on govt assistance. That’s what globalist want for us, and that’s what the sociopaths running the Commiecrat party want you to have, on their terms, of course.
It is! Fake news will be massive now! Get ready! So happy for Freepers, Rush, etc to have enlighten me through the years.
Yeah - right - it’s much better to “trickle down” money from the government?
BS.
Tell that to the homeless in L.A.
The devastated cities of Minneapolis.
The city of Seattle where the “high tax government” turned the city over to communists and refused to protect the people who, y’know, paid those taxes or refuse to pay for police.
BS. BS. BS.
And 50 years of support to Low Income and War on Poverty have failed. It’s time to eliminate those Federal Programs!
You know you live in a wealthy country when people come to pick up their welfare checks in expensive luxury cars.........................
Good post.
“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.”
Dear CBS News,
Regarding the above statement, why then did people risk their lives by climbing over the Berlin Wall in order to escape communist rule in East Germany? Why did people in countries like East Germany, Poland, Hungary, and elsewhere in the East Bloc watch programs like Dallas and Dynasty and pay top dollar for a pair of Levi jeans on the black market?
Yes, obviously not true. NY has high taxes and all the businesses are moving out of there...wait!
How many workers are hired by poor people???
I agree we need to replace much of the income tax with a really high import tariff.
You “wonder”? LOL
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