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Gmorgan4982 
LSU Fan
Hattiesburg, Miss.
Member since May 2005
89910 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 4:28 pm to Baloo)
quote:
Thoughts?
Study says "Water is not wet."
Stealing from people does not lead to their prosperity.
This post was edited on 11/13 at 4:29 pm
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Poodlebrain
LSU Fan
Way Right of Rex
Member since Jan 2004
12689 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 4:31 pm to Baloo)
The author is full of crap. Economic growth is a function of capital investment. And the amount of capital available for investment is influenced by taxes. The effects of taxes are twofold. First, they effect the amount of capital available, and second, they effect return on investment so they influence investment decision making.
The reason there was a surge in economic growth under Clinton despite his increasing the maximum tax rate on ordinary income was that at the same time the rate on long-term capital gains was reduced to 20% from 28%. People sold investments at unprecedented levels, and they were eager to re-invest elsewhere with prospects of lower taxes on subsequent gains. Trillions of dollars of capital was redeployed from stagnant enterprises into more dynamic high tech enterprises. And the economy flourished as those investments financed the explosion of Silicon Valley.
The tax revenue from Clinton's increase in the marginal tax rates was insignificant compared to the flood of revenue from capital gains at reduced rates but with an expanded tax base. Once the new investments began to show positive results, peoples' ordinary income began to increase and we actually saw revenues from the higher tax rates begin to pick up as employers needed to pay more to attract the best talent in the flourishing economy.
The economic growth wasn't due to tax increases. It was due to tax cuts that were not given the same attention as the increases because that didn't fit the agenda of those who sought redistribution of income like the author of the article you cited.
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wm72
New York/Roma
Member since Mar 2010
3122 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 4:37 pm to lsutiger90)
quote:
so why is $250k ($200k single) considered rich still??
What percentage of Americans make $250k ($200k single)?
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sugar71 
UCLA Fan
baton rouge
Member since Jun 2012
575 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 5:07 pm to wm72)
quote:
What percentage of Americans make $250k ($200k single)?
Joe the Plumber? 
Probably less than 2%
And most( Except Southerners )are probably Obama supporters
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Taxing Authority
LSU Fan
Houston
Member since Feb 2010
16738 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 5:36 pm to Baloo)
quote:
Analysis of six decades of data found that top tax rates "have had little association with saving, investment, or productivity growth."
Jeesus. You don't even have to get beyond the first sentence to know it's a hack piece.
To believe that a multi-thousand page tax code, examining the marginal on ONE bracket is a viable analysis is WEEE TODDD DID.
I'm starting to think critical thought is dead in this nation.
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boxcar willie
LSU Fan
kenner
Member since Mar 2011
2836 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 5:44 pm to Gmorgan4982)
quote:
Stealing from people does not lead to their prosperity.
Depends on how much is stolen. Like DB Cooper, $200,000 was alot of money in those days. If he survived the jump and he invested it properly, he could very well be prosperous today.
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NC_Tigah
LSU Fan
Member since Sep 2003
40149 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 5:49 pm to sugar71)
quote:
sugar71
The butthurt is strong with this one.
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