Report: Tax Cuts For Wealthy Do Not Stimulate Economy – Cue Collective Facepalm

/doh - facepalm - photo by Hobvias Sudoneighm

In today’s “Well duh!” news, it turns out that tax cuts for the wealthy do not stimulate the economy. This is according to a report by the non-partisan Congressional Research Service.

The report says cutting top tax rates don’t appear to boost saving, investment or productivity, or the size of the economic pie, but do seem to increase disparities in income.

The idea that you cut taxes to stimulate the economy has been the center of the Republican plank for 30 years starting with Reagan, says The Daily Ticker’s Henry Blodget. “This Congressional Research Service report, which is nonpartisan, says there’s no evidence that that is true.”

Current top marginal tax rates are 35% on income and 15% on capital gains and dividends. All are set to expire by year-end if Congress doesn’t act to stop implementation of the Budget Control Act. That law mandates that the top marginal rates will jump to 39.6% on income and dividends (as they were when Bill Clinton was president) and 20% on capital gains after the new year. – Tax Cuts for the Wealthiest Don’t Stimulate the Economy: Report, Yahoo!

So when Mitt Romney was on 60 Minutes and told Scott Pelley that his 14.1 percent effective tax rate was the “right way to encourage economic growth,” he was either delusional or full of shit. Take your pick. / photo by Hobvias Sudoneighm

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EconomyPoliticsTax Fairness

#economics#economy#Mitt Romney#Republican#rich#stimulus#supply-side#tax cuts#trickle down#wealth