Monday, September 17, 2012

New Report: Tax cuts for rich have not produced economic growth

Now slowly but surely, the facts are coming to light:

"The average tax rate faced by the top one percent of taxpayers was above 40% until the mid-1980s; today it is below 25%. --the lowest levels since the end of the second World War. Changes over the past 65 years in the top marginal tax rate and the top capital gains tax rate do not appear correlated with economic growth. The reduction in the top tax rates appears to be uncorrelated with saving, investment, and productivity growth. 
However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution. Lower top tax rates may be associated with greater income disparities."

--The Congressional Research Service, September 14, 2012

For the full text of the report, click here.