Tax Cuts Don't Lead to Economic Growth, a New 65-Year Study Finds

[Cigar]

Here's a brief economic history of the last quarter-century in taxes and growth.

In 1990, President George H. W. Bush raised taxes, and GDP growth increased over the next five years. In 1993, President Bill Clinton raised the top marginal tax rate, and GDP growth increased over the next five years. In 2001 and 2003, President Bush cut taxes, and we faced a disappointing expansion followed by a Great Recession.

Does this story prove that raising taxes helps GDP? No. Does it prove that cutting taxes hurts GDP? No.

But it does suggest that there is a lot more to an economy than taxes, and that slashing taxes is not a guaranteed way to accelerate economic growth.

http://www.theatlantic.com/business/archive/2012/09/tax-cuts-dont-lead-to-economic-growth-a-new-65-year-study-finds/262438/


Yea Yea Yea Yea we know ... it's all lies

[Stuck_In_California]

Here's a brief economic history of the last quarter-century in taxes and growth.

In 1990, President George H. W. Bush raised taxes, and GDP growth increased over the next five years. In 1993, President Bill Clinton raised the top marginal tax rate, and GDP growth increased over the next five years. In 2001 and 2003, President Bush cut taxes, and we faced a disappointing expansion followed by a Great Recession.

Does this story prove that raising taxes helps GDP? No. Does it prove that cutting taxes hurts GDP? No.

But it does suggest that there is a lot more to an economy than taxes, and that slashing taxes is not a guaranteed way to accelerate economic growth.

http://www.theatlantic.com/business/archive/2012/09/tax-cuts-dont-lead-to-economic-growth-a-new-65-year-study-finds/262438/


Yea Yea Yea Yea we know ... it's all lies

That is sheer stpidity.

I can say that in 1990 I changed my hairstyle and GDP growth increased over the next five years. Both are true, but they are unrelasted.

The tax policies you quoted have nothing to do with the indicators you quoted. Those indocators were caused by other things.

Tax policy is about revenue. And it is a proven fact that when you cut takes you actually increase revenue, and when you raise takes you actually decrease revenue.

As John F. Kennedy said:

"It is a paradoxical truth that tax rates are too high and tax revenues are too low and the soundest way to raise the revenues in the long run is to cut the rates now ... Cutting taxes now is not to incur a budget deficit, but to achieve the more prosperous, expanding economy which can bring a budget surplus."

– John F. Kennedy, Nov. 20, 1962, president's news conference

______________________________

"Lower rates of taxation will stimulate economic activity and so raise the levels of personal and corporate income as to yield within a few years an increased – not a reduced – flow of revenues to the federal government."

– John F. Kennedy, Jan. 17, 1963, annual budget message to the Congress, fiscal year 1964