50 years of tax cuts for the rich failed to trickle down, economics study says

Sat, 6 Feb 2021 06:39:19 +1100

Andrew Pam <xanni [at] glasswings.com.au>

Andrew Pam

"Tax cuts for the wealthy have long drawn support from conservative
lawmakers and economists who argue that such measures will "trickle
down" and eventually boost jobs and incomes for everyone else. But a new
study from the London School of Economics says 50 years of such tax cuts
have only helped one group — the rich.

The new paper, by David Hope of the London School of Economics and
Julian Limberg of King's College London, examines 18 developed countries
— from Australia to the United States — over a 50-year period from 1965
to 2015. The study compared countries that passed tax cuts in a specific
year, such as the U.S. in 1982 when President Ronald Reagan slashed
taxes on the wealthy, with those that didn't, and then examined their
economic outcomes.

Per capita gross domestic product and unemployment rates were nearly
identical after five years in countries that slashed taxes on the rich
and in those that didn't, the study found."

Via Hank G.

        *** Xanni ***
mailto:xanni@xanadu.net               Andrew Pam
http://xanadu.com.au/                 Chief Scientist, Xanadu
https://glasswings.com.au/            Partner, Glass Wings
https://sericyb.com.au/               Manager, Serious Cybernetics

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