Job Killing Taxes

Discussion in 'Economy' started by Star, Jun 20, 2012.

  1. Star
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    Star Gold Member

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    The chart below puts the lie to the Republican mantra that high marginal tax rates on the wealthiest among us kill economic growth. In fact-----in fact the empirical evidence shows; just the opposite is true, high marginal tax rates on the wealthiest among us equals economic growth.




    Back in the 1950s, when the top marginal tax rate was more than 90 percent, real annual growth averaged more than 4 percent. During the last eight years, when the top marginal rate was just 35 percent, real growth was less than half that. Altogether, in years when the top marginal rate was lower than 39.6 percent — the top rate during the 1990s — annual real growth averaged 2.1 percent. In years when the rate was 39.6 percent or higher, real growth averaged 3.8 percent. The pattern is the same regardless of threshold. Take 50 percent, for example. Growth in years when the tax rate was less than 50 percent averaged 2.7 percent. In years with tax rates at or more than 50 percent, growth was 3.7 percent.



    [​IMG]

    As Linden put it, “these numbers do not mean that higher rates necessarily lead to higher growth. But the central tenet of modern conservative economics is that a lower top marginal tax rate will result in more growth, and these numbers do show conclusively that history has not been kind to that theory.” Indeed, these numbers put the lie to the common Republican refrain that Obama and Democrats in Congress are trying to implement a “job-killing tax hike” by putting the top tax rate back to where it was under President Clinton.
     
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  2. JoeNormal
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    JoeNormal VIP Member

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    Absolutely true but the cons at the top of the heap have a lot to lose by admitting this. So they won't.
     
  3. itfitzme
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    itfitzme VIP Member

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    It all depends on whether there is an opportunity for growth.
     
  4. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    how could taking hard earned money from job creators and giving it liberal bureaucrats to spend make the economy grow.


    liberal bureaucrats are not inventors engineers and entrepreneurs!!!
     
  5. Star
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    Star Gold Member

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    If the chart makes the Republican cut taxes mantra look idiotic -- so be it. I can see why you and other Republicans are afraid to address the chart that puts the lie to the Republican mantra that lower taxes on the wealthiest among us are good for the economy but...
    ...but using Romneyspeak -- au contraire, mon ami -- it's up to you to show how-when-where giving tax comfort to the comfortable created jobs or-----or grew the economy.


    Somehow you missed the point of the chart, I'll spell it out for you. The chart could not be more clear --- higher taxes on the wealthiest among us equals high GDP growth, lower taxes on the wealthiest among us equals low GDP growth-----g'head blow your smoke, it's all ya got.
     
  6. TakeAStepBack
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    TakeAStepBack Gold Member

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    Correlation does not imply causation. You're trying to equate the monetary health and policy over a span where it changed drastically. You're also omitting other variables that would better indicate the reasons why growth can occur under those conditions.

    Furthermore, raising the tax rates on the under the current weight of hiring tax burdens, massive debt, etc...isn't going to get you the desired result. The exact opposite. But I say lets do it. Lets tax the 200K plus crowd at 90% and see what happens. If tax revenue goes down and more jobs leave the country, you LOLberals morons have to agree to leave the country for good.
     
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  7. expat_panama
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    expat_panama Silver Member

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    Sure it does, but Star failed to show either.

    We're trying to see what taxes do to real GDP. Fine all we do is plot tax rates with real GDP--
    [​IMG]
    --and anyone can see that high taxes mean low GDP and low taxes make for high GDP.
     
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  8. CrusaderFrank
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    CrusaderFrank Diamond Member

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    Obama can fund more Solyandras with tax payer money
     
  9. TakeAStepBack
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    TakeAStepBack Gold Member

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    That doesn't really capture it either. Because GDP grew while top inc. rates were extreme in the 1950s, rather than declined. That is because correlation does not imply causation. There are other variables that need to be considered to make this determination properly.

    Common sense says that the lower taxes spur GDP growth. But in this case, GDP grew steadily throughout and began to sag at the end of the graph curve while taxes were lower.
     
  10. JoeNormal
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    JoeNormal VIP Member

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    Whatever the mechanism, money needs to be put into the hands of the people who will spend it. When you give the rich more money than they know what to do with, they'll just sit on it.
     

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