Do tax cuts lead to economic growth?

Not even a blip on the radar in this graphic.

"Somebody who cares about hitting a specific income target, like $1 million, might work less hard after receiving a tax cut."

"a new report from the nonpartisan Congressional Research Service found that, over the past 65 years, changes in the top tax rate “do not appear correlated with economic growth.”"

https://www.nytimes.com/2012/09/16/opinion/sunday/do-tax-cuts-lead-to-economic-growth.html?_r=1

Yeah, trickle down is pretty much exactly what its name implies. Very little actually gets to the middle/lower class. It's just a nicer savings for corporations to pocket, something they will especially do now that they've had a few years to see how they can get the same production with a smaller work force.

Here's another point from the CRO study.

"The share of total income going to the top 0.1 percent hovered around 4 percent during the 1950s, 1960s and 1970s, then rose to 12 percent by the mid-2000s. During this period, the average tax rate paid by the 0.1 percent fell from more than 40 percent to below 25 percent."

"In other words, cutting taxes on the rich may not grow the economic pie. But the study found that those cuts can effect “how that economic pie is sliced.”"

https://www.cnbc.com/id/49059989

So, basically, cutting the top marginal tax rate gives more income to the rich without growing the pie.

Can we get on with some sensible tax policy now?

interesting that .. we have recently seen a tax cut for top earners for the purpose of trickle down .. encouragement to work ...and to prevent wealthy tax payers leaving england ..... maybe the last reason is most believable .

Your top earners pay almost 50% in taxes, ours average about 12% or less..

I don't think that many millionaires would leave the US if we raised it from 12 to 25%, because it's still less than most of the rest of the planet pays.

i wouldn't leave , but i wouldn't be surprised if some did with over a hundred percent rise .

I don't think that taxes have anything to do with growth, however they can eliminate whole industries. For example, a small tax on boats almost eliminated the boating industry here in California. People who depended on boating, like for example people who fix or pilot or sell boats, for a living lost their jobs. Also, the aplication of the minimum wage in Samoa had a similar effect on the tuna canning industry on the island.

Where would they go? The UK and Germany have about the best business climate outside of the US, and your tax rates are four times as high..

So, if they leave here, and want a decent business climate and good standard of living, they're going to pay even more.

The boating industry here in California relocated to Mexico, sort of like how John Kerry parked his boat outside Massachusetts.

So you have no boats on the California coast?
I guess that's alright, as long as the shipping industry didn't relocate as well.

Well, if the effect on economic growth was zero, then the people in the boating industry went into other industries. And wages are a different matter entirely. This study is about top tax rates.

The growth in boat sales was way less than zero. For about a year until congress repealed the tax, there were no boat sales. And I can see how one would not want to call minimum wage a tax, but anything that the government does that increases costs has the effect of a tax. For the people who lost their jobs, it was a 100% tax.

Whenever I save money on my taxes I spend all of it on guns and ammo.

Just trying to help the economy.

Of course I live in Florida... we have issues... drugs, immigrants, minorities, exotic animals, exotic clubs... and you know the zombies are coming here 1st.



And for you sensitive types: I was being sarcastic.

Well and regardless of tax cuts the real overall global economy cannot grow since the debt-based "slavery" system is essentially at its final end now and, of course, the only real growth for the last 10+ years was in Asia (China, India, etc) which is finally also starting to saturate.

So what we all (or at least the 99%) have to look forward to is a final great global depression (much bigger than 2008) and the final end of the debt-based slavery system...

..and the blank check (QE3) policy by the central bankers, to desperately try to keep the damn ruling elites and their slavery system alive, will not fix the system and will not stop the system from finally falling and failing.

Except in the sense that it wasn't a 100% tax.

I don't even know what your boat tax story has to do with this, nor can I speak to it at all because I don't know anything about it. This study is about federal marginal tax rates.