The Impact of Tax Cuts

Cato’s Dan Mitchell discusses academic research on the economic impact of tax cuts for the top 1% : “the cut in top 1% tax rates leads to a statistically significant increase in real GDP of up to 0.34 percent in the third year….There are also spillover effects to incomes outside of the top 1%. Average incomes of the bottom 99% rise by 0.15 percent on impact and by up to 0.35 percent in the third year.”

As Thomas Sowell explains, “The real effect of tax rate reductions is to make the future prospects of profit look more favorable, leading to more current investments that generate more current economic activity and more jobs.”

But leftists aren’t interested in these arguments, since the wealthy also benefit. Instead, we’re stuck with Obamanomics.

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One Response to “The Impact of Tax Cuts”

  1. The End Of Prosperity by Laffer, Moore, and Tanous | The Blog For Truth, Justice, & The Josh Way Says:

    […] spiked Ireland’s growth rate while slashing unemployment). A smart tax policy is undoubtedly an important factor in just how productive a country’s economy will […]

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