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> 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 effe
by nathan_phoenix 5y ago
> 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.
- nimbius 5y agoan 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.
- lapetitejort 5y agoDidn't the idea start with the Laffer Curve [0] during the Ford admin? [0]: https://en.wikipedia.org/wiki/Laffer_curve https://en.wikipedia.org/wiki/Laffer_curve
- subroutine 5y agoAs part of the series on "Rising tides not lifting all boats", and "tax cuts for the rich don't tend to trickle down"... https://cushman.host.dartmouth.edu/books/CommonSenseFM/Chap5.pdf https://cushman.host.dartmouth.edu/books/CommonSenseFM/Chap5...
- nightski 5y agoThat same saying could be used for the other argument. Rising taxes not lifting all boats. Taxes for the rich don't tend to trickle down.