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Baloo 
LSU Fan
Formerly MDGeaux
Member since Sep 2003
41318 posts
| Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:04 pm)
Interesting article from the Atlantic on tax cuts and the GDP
LINK /
quote:
Analysis of six decades of data found that top tax rates "have had little association with saving, investment, or productivity growth." However, the study found that reductions of capital gains taxes and top marginal rate taxes have led to greater income inequality. Past studies cited in the report have suggested that a broad-based tax rate reduction can have "a small to modest, positive effect on economic growth" or "no effect on economic growth."
Well into the 1950s, the top marginal tax rate was above 90%. Today it's 35%. But both real GDP and real per capita GDP were growing more than twice as fast in the 1950s as in the 2000s. At the same time, the average tax rate paid by the top tenth of a percent fell from about 50% to 25% in the last 60 years, while their share of income increased from 4.2% in 1945 to 12.3% before the recession.
Thoughts?
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bunky
LSU Fan
FREE EL GUACHO
Member since Jul 2011
4463 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:06 pm to Baloo)
"You can find a study that says anything"
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Bama2010
Member since Oct 2012
228 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:06 pm to Baloo)
Its kinda use data to create a talking point isn't it?
During the 50s we were the only economy that was in good shape.
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slackhouse 
USA Fan
Member since Aug 2005
15287 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:08 pm to Baloo)
quote:
Thoughts?
that in today's America, you can always find someone willing to do a study with predetermined results in mind. And, 100% of the time, the only studies you hear about are the one's with the predetermined desired results.
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BigAppleTiger
LSU Fan
New York City
Member since Dec 2008
5300 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:08 pm to Bama2010)
The truth we have already lived is a valid talking point.
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DapperDan
LSU Fan
Member since Jul 2012
1226 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:08 pm to Baloo)
quote:
Thoughts?
Rock solid analysis. No room for any more variables.
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BugAC
LSU Fan
Baton Rouge
Member since Oct 2007
14095 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:09 pm to Baloo)
quote:
Thoughts?
You quoted from the atlantic.....
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GoCrazyAuburn 
Auburn Fan
Member since Feb 2010
9249 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:09 pm to Baloo)
Compariing marginal rates from the 1950's to now is intellectually dishonest at best, and shows no real understanding of taxes.
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TN Bhoy
USA Fan
Philly
Member since Apr 2010
33584 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:10 pm to Baloo)
I just conducted a study of this study and my study found that this study is full of shite.
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wickowick
LSU Fan
Head of Island
Member since Dec 2006
13455 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:10 pm to Baloo)
quote:
Thoughts?
How many people were on welfare in the 50's compared to today? How does that effect the GDP...
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BlackHelicopterPilot
LSU Fan
Top secret lab
Member since Feb 2004
27107 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:12 pm to Baloo)
quote:
But both real GDP and real per capita GDP were growing more than twice as fast in the 1950s
Coming out of a huge war and with little global competition
quote:
as in the 2000s
a decade + that included 911 attack and 2 large wars, lots of globalization, and international financial problems.
Yep......perfect comparisons
Statistics are like bikinis. What they reveal is interesting. What they hide is VITAL
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Powerman
LSU Fan
Corpus Christi, TX
Member since Jan 2004
116282 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:15 pm to slackhouse)
quote:
that in today's America, you can always find someone willing to do a study with predetermined results in mind. And, 100% of the time, the only studies you hear about are the one's with the predetermined desired results.
Ironic that everyone in the thread is claiming this, yet they are completely blinded by their own completely unfounded preconceived notions.
Everyone is dismissing the study before lifting a solitary finger to try to learn something.
Seriously, frick all of you.
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wickowick
LSU Fan
Head of Island
Member since Dec 2006
13455 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:15 pm to Powerman)
quote:
Seriously, frick all of you.
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Turbeauxdog
LSU Fan
Member since Aug 2004
4773 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:16 pm to Baloo)
Top rates are meaningless measures of what people were paying.
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moneyg
LSU Fan
Member since Jun 2006
15173 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:18 pm to Baloo)
quote:
Thoughts?
Of course higher taxes have a negative effect on growth. Common sense and simple economics should tell you that.
The comparison of 1950s to today is completely irrelevant given the number of variables in the equation. An more pointed question would be: How much would additional taxes in today's economy would affect today's economy.
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slackhouse
USA Fan
Member since Aug 2005
15287 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:19 pm to Powerman)
quote:
Powerman
show me a study that says tax cuts lead to growth, and I'll provide the same thoughts. Studies are b.s. They are easily manipulated and unscientific in nature.
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Tigah in the ATL
LSU Fan
Atlanta
Member since Feb 2005
21020 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:19 pm to Baloo)
quote:
Thoughts
minds are made up already
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TigerinATL 
New Orleans Saints Fan
Member since Feb 2005
26632 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:19 pm to Baloo)
Jersey or GMB posted something back in the day about how much rates matter. Think of it like price points. Psychologically there isn't much difference between $7.95 and $8.95, but the difference between $9.95 and $10.00 is significant even though it's 20 times smaller. Tax rates have similar psychological break points and within those ranges the actual rate doesn't matter nearly as much to businesses as stability and predictability.
This post was edited on 11/13 at 3:20 pm
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alajones
LSU Fan
Barksdale AFB
Member since Oct 2005
19544 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:19 pm to Bama2010)
quote:
During the 50s we were the only economy that was in good shape.
The 50's and 90's should be thrown out when doing economic studies. You can't always count on having to rebuild half of the civilized world or a brand new market emerging.
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90proofprofessional
LSU Fan
Member since Mar 2004
6191 posts
| re: Tax Cuts don't lead to growth, study says (Posted on 11/13/12 at 3:20 pm to Baloo)
quite germans
and a pretty shallow study
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