Senate Republicans were only partially successful in halting circulation of a report that essentially shatters a right-wing shibboleth. The report is by the Congressional research Service, a division of the Library of Congress, and it states that there is no evidence to support the conservative contention that lowering the top tax rates stimulate economic growth. Below is the paragraph with the raw meat, and here is a link to the report
Throughout the late-1940s and 1950s, the top marginal tax rate was typically above 90%; today it
is 35%. Additionally, the top capital gains tax rate was 25% in the 1950s and 1960s, 35% in the
1970s; today it is 15%. The real GDP growth rate averaged 4.2% and real per capita GDP
increased annually by 2.4% in the 1950s. In the 2000s, the average real GDP growth rate was
1.7% and real per capita GDP increased annually by less than 1%. There is not conclusive
evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the
top tax rates and economic growth. Analysis of such data suggests the reduction in the top tax
rates have had little association with saving, investment, or productivity growth. However, the top
tax rate reductions appear to be associated with the increasing concentration of income at the top
of the income distribution. The share of income accruing to the top 0.1% of U.S. families
increased from 4.2% in 1945 to 12.3% by 2007 before falling to 9.2% due to the 2007-2009
recession. The evidence does not suggest necessarily a relationship between tax policy with
regard to the top tax rates and the size of the economic pie, but there may be a relationship to how
the economic pie is sliced.
Here is what Rick Unger, writer for Forbes magazine, said about the brouhaha…
“For almost 100 years, the Congressional Research Service has worked to assist Congress by providing well-researched and accurate data to be utilized in the creation of important public policy. It has done so when Congress was controlled by Democrats and when Congress has been under the control of Republicans. No matter what party was in charge, the C.R.S. has always endeavored to keep politics out of their work in the effort to provide data that would inform and advance our public policy.
Apparently, solid, well researched data no longer matters—at least not when it comes to the Congressional Republicans.”
The above quote is not quite true, Give them a sex scandal, and the Republicans will Ken Starr the heck out of everybody to get details. Just do not ask them to examine their cherished right-wing beliefs; you know how it riles them so….
Democratic senators had the report published and disseminated on Thursday, those dirty dogs.