The economic consequences of major tax cuts for the rich
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The economic consequences of major tax cuts for the rich
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Re: The economic consequences of major tax cuts for the rich
#2> We find tax cuts for the rich lead to higher income inequality in both the short- and medium-term. In contrast, such reforms do not have any significant effect on economic growth or unemployment. Our results therefore provide strong evidence against the influential political–economic idea that tax cuts for the rich ‘trickle down’ to boost the wider economy.
The conclusion taken from the abstract.
Re: The economic consequences of major tax cuts for the rich
#3From the abstract:
> We find tax cuts for the rich lead to higher income inequality in both the short- and medium-term. In contrast, such reforms do not have any significant effect on economic growth or unemployment. Our results therefore provide strong evidence against the influential political–economic idea that tax cuts for the rich ‘trickle down’ to boost the wider economy.
I'd be interested in hearing from those who consider this a surprising result. To me it seems entirely expected, but with online echo-chambers being what they are I have no doubt my lack of surprise could just mean I'm in an informational cul-de-sac.
Re: The economic consequences of major tax cuts for the rich
#4I mean. I guess I'm glad someone is out there actually looking at the data. Unfortunately I'm pretty sure it's not going to actually sway anyone.
Re: The economic consequences of major tax cuts for the rich
#5> We find tax cuts for the rich lead to higher income inequality in both the short- and medium-term. In contrast, such reforms do not have any significant effect on economic growth or unemployment. Our results therefore provide strong evidence against the influential political–economic idea that tax cuts for the rich ‘trickle down’ to boost the wider economy. The conclusion taken from the abstract.
an unsurprising find, considering its birthright was US president Ronald Reagan who had invented it out of whole-cloth to evangelize and tantalize neoliberal reforms during his presidency.
It strikes me as fascinating that so many of these reforms, once touted as essential and prudent, have over two or more decades proven to be outright political grifting.
Re: The economic consequences of major tax cuts for the rich
#6From the abstract: > We find tax cuts for the rich lead to higher income inequality in both the short- and medium-term. In contrast, such reforms do not have any significant effect on economic growth or unemployment. Our results therefore provide strong evidence against the influential political–economic idea that tax cuts for the rich ‘trickle down’ to boost the wider economy. I'd be interested in hearing from those…
I don't think this is surprising either. The whole "trickle-down economics" arguments for such tax cuts have always sounded... bullshit (for lack of a better word), exacerbated by the fact that decades of it (since the Reagan era in the US, for example) has only served to make the rich richer, poor poorer and erode the middle class completely. If it was a brilliant idea (i.e. the idea that the the only thing holding back the rich from elevating everyone else from poverty were those pesky low 10s of percent taxes) that worked, everyone would've been favor of it and we would've eliminated taxes for the rich completely by now.
It's always good to have scientific data and analysis confirm your intuition, though.
Re: The economic consequences of major tax cuts for the rich
#7Question I'm asking in good faith: will this proof have any consequence for the bottom 99.99%? Is there a way this research helps shape policy?
Re: The economic consequences of major tax cuts for the rich
#8I mean. I guess I'm glad someone is out there actually looking at the data. Unfortunately I'm pretty sure it's not going to actually sway anyone.
Sure, tax cuts haven't work yet, but that's because they're still too high!! One more should do it.
Re: The economic consequences of major tax cuts for the rich
#9Question I'm asking in good faith: will this proof have any consequence for the bottom 99.99%? Is there a way this research helps shape policy?
Not unless the bottom 99.99% take action. As most already suspect what this research shows, the sad answer is: No
Re: The economic consequences of major tax cuts for the rich
#10Question I'm asking in good faith: will this proof have any consequence for the bottom 99.99%? Is there a way this research helps shape policy?
Is it possible that it moves the Overton window? I mean, in the US there has been serious funding for decades aimed at moving the needle around things like guns and taxes. And that organized long term effort has been very successful. Possibly some of these things may result in some swing back to the middle?