December 14, 2012

Study: Hiking upper end tax rates don't affect economy

Huffington Post -  A Congressional Research Service report that was reissued after Republicans complained about it before the elections still finds little evidence that the Bush-era tax cuts spurred growth or that hiking the top rates would have more than a "negligible" impact on the economy.

The CRS study did find, however, that the lower tax rates in place since 2001 have had a strong impact on increasing income inequality in America.

"Analysis of such data conducted for this report suggests the reduction in the top tax rates has had little association with saving, investment, or productivity growth," the study says. "It is reasonable to assume that a tax rate change limited to a small group of taxpayers at the top of the income distribution would have a negligible effect on economic growth."

1 comment:

Anonymous said...

Raising the tax rates for the rich won't have a "negligible" impact on the economy, it will have a positive impact on the economy. Having that money put to work in any productive way will be better for the economy then letting it sit in a tax haven only accumulating more pelf for people who already own too much.