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Tax Cuts For The Rich Do Not Spur Economic Growth: Study


dinar_stud
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Tax Cuts For The Rich Do Not Spur Economic Growth: Study

There is no clear correlation between tax cuts for high earners and economic growth, according to a new study by Congress’ nonpartisan policy analyst.

“There is not conclusive evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the top tax rates and economic growth,” concluded a report by the Congressional Research Service released Friday. “Analysis of such data suggests the reduction in the top tax rates have had little association with saving, investment, or productivity growth.”

The findings are pertinent to a central debate in the presidential election, wherein President Obama is pushing to end the Bush-era tax cuts on high incomes, while his Republican challenger Mitt Romney insists on cutting rates across the board 20 percent below current policy. Democrats contrast the tax hikes of the 1990s and ensuing economic growth with the tax cuts of the 2000s and relatively meager gains that followed. Republicans, meanwhile, argue that the recovery is weak because the economy remains shackled by regulatory and tax burdens.

The study delves into the last 65 years of U.S. tax policy pertaining to high earning Americans — including top marginal rates on income and capital gains taxes — and how it impacts their decision-making. The conclusion: cutting effective taxes on the rich doesn’t boost economic growth, but it does correlate with rising income inequality.

“Throughout the late-1940s and 1950s, the top marginal tax rate was typically above 90%; today it is 35%. Additionally, the top capital gains tax rate was 25% in the 1950s and 1960s, 35% in the 1970s; today it is 15%. The real GDP growth rate averaged 4.2% and real per capita GDP increased annually by 2.4% in the 1950s. In the 2000s, the average real GDP growth rate was 1.7% and real per capita GDP increased annually by less than 1%,” wrote Thomas L. Hungerford, CRS’ specialist in public finance and author of the report.

STUDY

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Taxes are Taxes are Taxes!!!!

If I am the RICH man and I sell all the biscuits in town.

When you liberals add $0.10 more TAX to my biscuit.

I add $0.20 to the price of my biscuit and you pay it.

Wake up Tax Payers!!!

You pay all the taxes.

This study should have read:

“Study: Fiscally Responsible Spending By Congress Spurs Economic Growth.”

I’m not totally convinced that the liberals are as stupid as they act.

But it is starting to appear that way.

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Taxes are Taxes are Taxes!!!!

If I am the RICH man and I sell all the biscuits in town.

When you liberals add $0.10 more TAX to my biscuit.

I add $0.20 to the price of my biscuit and you pay it.

Wake up Tax Payers!!!

You pay all the taxes.

This study should have read:

“Study: Fiscally Responsible Spending By Congress Spurs Economic Growth.”

I’m not totally convinced that the liberals are as stupid as they act.

But it is starting to appear that way.

I often wonder the same exact thing <_<

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Let's make this Simple!! Do you wanna work for somebody who can't afford to Pay You, Or do you wanna work for somebody that Can Afford to Pay You!! :lol: One more!! If a Rich Person has this amount money and he willing to spend on the Person, making them the Money, but all of sudden, you have this Middle Guy that wants a Piece of the Action!! And They say Hey you got pay me also, it the Law!! Who do you Think The Middle Man Effected!!

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Tax Cuts For The Rich Do Not Spur Economic Growth: Study

OK, I hear you, but the question begs.... Who employs who! ?????

The Congressional Research Service (CRS) works exclusively for the United States Congress, providing policy and legal analysis to committees and Members of both the House and Senate, regardless of party affiliation. As a legislative branch agency within the Library of Congress, CRS has been a valued and respected resource on Capitol Hill for nearly a century.

Thats who

Congressional Research Service

Have you heard of Henry Ford? Henry Ford was the smartest business man ever! He realized that if his workers made decent wages, they could buy his products. You need your consumer class to be strong so that the economy grows. There have been many studies that show giving more to the rich actually decreases economic expansion because money is removed from the economy. If the money is given to the middle class, they actually purchase more products which creates more jobs, and increases corporate sales. In essence, you need to start from the bottom up, instead of the top down!!!

Edited by dinar_stud
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I appreciate your perspective, and yes I remember Henry Ford, he told us that you could have a Model "T" in any color you wanted to order it in as long as it was black. I also understand that this is supposedly an unbiased, nonpartisan commission that created the report, But, for the record, there is still a huge amount of money sitting on the sidelines (obviously from the wealthier and/or wealthiest amongst us),and that will most likely continue to remain on the sidelines unless tax laws are relegated to be more conducive to investment within this country, In my opinion, that would be a huge economic boom, if it were put back into our economy. As it now stands, that is not currently the case.

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Ok... so let's accept the finding of this premise for a moment... "Tax cuts do not spur growth... " Is the study saying, conversely, that raising taxes does? No... of course not! And that is the point... and the "implied" spin. The findings... if truly "measurable"... would honestly say that cutting taxes is simply value-neutral then. But... in reality... those rich "producers" know that tax cuts DO spur growth.

The study's finding, if accepted as such, is dishonest implied logic... the same as saying..."If one person makes more money than another... it must be coming out of the other person's pocket!" Just a total lie!

Wealth (money) is CREATED.... not redistributed. Any of us can CREATE a dollar's worth of wealth at any time... without "stealing" it!

Jax :)

Edited by Jaxinjersey
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