Sep 22, 2012 at 4:33 am
I agree with Chye-Ching Huang, who agrees with the Congressional Research Service, Len Burman, and me: over the long, historical record of special tax treatment for investment incomes and tax cuts to the top marginal tax rates, one simply doesn’t find significant correlations with greater investment, savings, productivity, or income growth.
Lowering the top tax rates do correlate with something, though: higher income inequality.
This seems germane on a day when we’re talking—as I just did on the Martin Bashir show—about the reasons why some folks with very high incomes pay very low tax rates.
Source: Hungerford, CRS
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