CRS Reposts Supressed Document on Tax Policy
Dec 13, 2012 at 9:06 pm
Well, I guess all’s well that ends well, but this whole episode still freaks me out a bit…maybe more than a bit.
As I recount here, the non-partisan Congressional Research Service initially withdrew this paper showing that there’s little correlation between changes in high-income tax rates and either economic growth or investment. There is, however, a negative correlation between such changes and income inequality (lower tax rates and high-incomes are assoicated with higher levels of inequality).
Well, the paper’s back up on their site now, with apparently few changes–certainly nothing substantive.
The whole episode just amplified the extent to which facts are on the run these days. And that just can’t be good.
One Response to “CRS Reposts Supressed Document on Tax Policy”
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About
Jared Bernstein’s areas of expertise include federal and state economic and fiscal policies, income inequality and mobility, trends in employment and earnings, international comparisons, and the analysis of financial and housing markets.
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I think the best way to reduce income inequality is to increase the income of the poor. This can be done by abolishing the payroll tax, raising the federal minimum wage to a humane level, and raising Social Security benefits.
I recommend a recent article by Warren Mosler called “The MMT Grand Bargain: Raise Social Security Benefits and Suspend FICA”.