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

Discussion in 'Politics' started by Free Thinker, Sep 17, 2012.

  1. The poor don't create jobs, the rich can create jobs. But middle class consumers create demand, and demand creates jobs IMO.
     
    #11     Sep 17, 2012
  2. Maybe we should make a movie about creating jobs since we have recently learned that movies are responsible for just about everything that happens.
     
    #12     Sep 17, 2012
  3. Brass

    Brass

    And there it is. Stupid for stupid's sake. To think I once believed you knew better.
     
    #13     Sep 17, 2012
  4. there was already one made that profiled how romney plans to do it. wall street. romney as gorden gekko.
    i dont think he will be able to do that to america twice. i think it will go more like this:
    http://www.youtube.com/watch?v=ZO5EFYY6P14
     
    #14     Sep 17, 2012
  5. Even if there were correlation it would be meaningless. You can't compare across time periods without statistically controlling for economic/historical variation and measuring the impact of "published" vs. "effective" tax rates.

    1. The period of 1945-1965 was unique in American history. It established the US as the leading manufacturing country in the world, not because of our manufacturing/economic prowess, but rather because of our military might. At the end of WWII, the US had 5% of the world's population and almost 70% of the world's intact manufacturing and transportation infrastructure because most of Europe and Asia had been bombed to ashes during the war. For about 20 years the US had the highest manufacturing price/wage structure in the world. During that period we had very little economic competition from other countries -- completely different than the time period 1965-2012.

    2. Most research uses meaningless "published" tax rates. The only rates that matter in economic studies are "effective" tax rates. Effective tax rates have been drastically impacted by two factors: (a) Until the 1980s, wealthy people used leveraged non-recourse loan tax shelters to dramatically lower their effective tax rates. Those shelters were outlawed in the 1980s under Reagan. (b) Wealthy people have for decades "offshored" their money to hide it from taxes. Back in the 1950s and 1960s, people just moved their money to places like Switzerland (usually via trusts). In recent times the laws changed and the "foreign investment vehicles" have become more sophisticated, but the games continue.

    Show me a study that controls for the historical after-effects of WWII and uses true effective tax rates across all times periods and I'll believe it. Until then, all these tax/economy studies (by both the left and the right) are junk science.
     
    #15     Sep 17, 2012