Large tax cuts for the rich cause higher income inequality, and don't fuel economic growth or cut unemployment, a new paper by academics from the London School of Economics and King's College London shows.
"Cutting taxes on the rich increases top income shares, but has little effect on economic performance," the researchers concluded.Large tax cuts for the rich don't lead to economic growth and employment, and instead cause higher income inequality, a new study that examined tax cuts over 50 years has suggested.
This counters arguments that tax cuts for the rich cause a "trickle down" effect that benefits other people, which the researchers noted has been part of the rationale for major tax reforms in the US. Hope and Limberg analyzed major tax cuts for the rich in 18 Organisation for Economic Co-operation and Development countries, including the US, Japan, and Norway, between 1965 and 2015.
HughJaeger
DawnRLFreeman trickle down economics is a delusion
BlazeMancillas Cities give away the farm to tech companies, donate land, waive building fees, reduce prop taxes. The moment they are asked for community participation in the form of taxation i.e. employee headcount, CEO wealth tax, they immediately bolt. SEE YA, don't let the door hit ya.
You convinced me at “50 years”.
Known this for a while.
No. Way. Reagan was wrong?!?
And in other news, water is wet...
Ryan_Deem Literally every non-Republican has been saying that since the 80s but nobody listens.
Duh!
And in other news water is wet.
Shocking...the system works exactly as the richie riches intended.
In totally unrelated news, breathing keeps people alive.
Our economy would grow under a analogy that does require you pee on your citizens JoeBiden Feed the economy from the roots up to the branches of the Tree of Life. The American Family Tree is nutritious from the roots. Roots support the trunk, the trunk supports the branch
SHOCKER
Crazy how the people who take the most out — to build their personal wealth, then horde it, make things get worse.
jim_brown So...works as intended?
So people income went up but they didn’t invest.
No shit.
KyleKulinski
Stunning
Crackmacs So when do start reversing this? The sooner the better.
Do ya think?
'makes inequality worse' I'm pretty sure that's intentional.
Voodoo Economics....Bush 41 said it best!
damn!! Whoda thunk it!!
Newsflash: water is wet
No shit 🙄💰 Still won’t stop Republicans from trying to cut taxes for the rich every chance they get. It’s all they know
Yeah, no shit...
YA THINK
This is known. On both the micro and macro, individual and corporation, level. The question is why is it still being done?
Taxes have nothing to do with inequality. Taxes have nothing to do with economic opportunity. Education, Education, Education, Education. Want higher taxes on the rich? fine, but it will do NOTHING for inequality.
A huge study of 50 years of declining US education standards suggests poor education systems make inequality worse. Really tired of people blaming tax systems for inequality. There have been no decreases in education funding due to tax cuts, but education is why we have Ineq.
drjuliashaw, this may be of interest to you.
Lots of propaganda keep the righties voting for more self destruction. They also know MedicareForAll would be good for America too
This shouldn’t come as a shock to anyone