Tax Cuts don't lead to growth, study says | TigerDroppings.com

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Baloo
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Tax Cuts don't lead to growth, study says


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
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Member since Jul 2011
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re: Tax Cuts don't lead to growth, study says


"You can find a study that says anything"





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Bama2010
Member since Oct 2012
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re: Tax Cuts don't lead to growth, study says


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
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Member since Aug 2005
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re: Tax Cuts don't lead to growth, study says


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
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re: Tax Cuts don't lead to growth, study says


The truth we have already lived is a valid talking point.





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DapperDan
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Member since Jul 2012
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re: Tax Cuts don't lead to growth, study says


quote:

Thoughts?


Rock solid analysis. No room for any more variables.






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BugAC
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Baton Rouge
Member since Oct 2007
18274 posts

re: Tax Cuts don't lead to growth, study says


quote:

Thoughts?


You quoted from the atlantic.....








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GoCrazyAuburn
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re: Tax Cuts don't lead to growth, study says


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
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Sketty, Wales
Member since Apr 2010
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re: Tax Cuts don't lead to growth, study says


I just conducted a study of this study and my study found that this study is full of shite.





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wickowick
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re: Tax Cuts don't lead to growth, study says


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
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re: Tax Cuts don't lead to growth, study says


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
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Corpus Christi, TX
Member since Jan 2004
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re: Tax Cuts don't lead to growth, study says


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
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re: Tax Cuts don't lead to growth, study says


quote:

Seriously, frick all of you.






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Turbeauxdog
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re: Tax Cuts don't lead to growth, study says


Top rates are meaningless measures of what people were paying.





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moneyg
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re: Tax Cuts don't lead to growth, study says


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
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Member since Aug 2005
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re: Tax Cuts don't lead to growth, study says


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
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Atlanta
Member since Feb 2005
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re: Tax Cuts don't lead to growth, study says


quote:

Thoughts
minds are made up already






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TigerinATL
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Member since Feb 2005
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re: Tax Cuts don't lead to growth, study says


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
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Member since Oct 2005
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re: Tax Cuts don't lead to growth, study says


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
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Member since Mar 2004
8651 posts

re: Tax Cuts don't lead to growth, study says


quite germans

and a pretty shallow study






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