Tax Cut Myth

Republicans love themselves those tax cuts. That's all you hear. We need tax cuts to stimulate the economy.

Well, the folks over at Angry Bear have taken a look at the effects of tax cuts. And they have concluded that:

"Going as far back as there is official data on economic growth, what we find is that expansions associated with reductions in the top marginal income tax rate have been shorter and slower than expansions that did not involve tax cuts."

Here are the figures.

The length of time of the economic expansion is longer with no marginal tax change or a marginal tax increase than it is with a marginal tax cut.



The growth rate in Real GDP per capita is greater with a marginal tax increase or no marginal tax change than it is with a marginal tax cut.



The growth in real GDP per capita is greater with a marginal tax increase or no marginal tax change than it is with a marginal tax cut.

See the article for the backup information on the data,how it was analyzed, and further discussions on the implications of these figures.