REPUBLICANS CANNOT HANDLE THE TRUTH, so they try to bury it

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.

9 thoughts on “REPUBLICANS CANNOT HANDLE THE TRUTH, so they try to bury it

  1. I’m not an economist, but it seems to me, that while the study does “prove” lower taxes on the rich doesn’t improve national economic performance, that study also fails to take in to account the significant differences in the economic policies of the US, during the time periods involved. I also dare say, that the US of the 1950s with a large, young, highly skilled and more importantly highly disciplined (ex-military members accounting for literally millions in the workforce) contrasts greatly with the current workforce of largely older, less physically fit (only 13% of military age males even qualify for military service), and far less disciplined.

    Failure to take in to account the numerous other factors in economics calls into question the validity of the entire study, other then in the very narrow facet it was devised to look at, which at best that makes the study unhelpful, at worst it makes the study completely misleading.

    With all that said, I would think this is an important area, that deserves far more unbiased scrutiny and study.

    • This WAS an unbiased study. The Congressional Research people have been doing studies and research for Congress for over a hundred years.
      The report was about tax rates, and economic growth, not worker productivity.

      • I wasn’t contesting if the study was bias or not, but the relevancy of the study, as I stated. By not factoring in the myriad of forces that effect the economy, it gives a completely misleading conclusion.

  2. “Failure to take in to account the numerous other factors in economics calls into question the validity of the entire study, other then in the very narrow facet it was devised to look at, which at best that makes the study unhelpful, at worst it makes the study completely misleading.”

    Exactly.

  3. Debunking Liberal Myths About Tax Cuts and the Economy

    The Facts About Tax Cuts, Revenue, and Growth

    No, the reality is twofold. First, if we’re honest, we shouldn’t trust anything coming from the Govt. — especially if it supports the govt.’s current policy. We’ve already seen ample evidence to suggest that there is nothing about our govt. that has not been politicized, so accepting Melfany’s reports because they come from a govt. organization is like accepting the word of your child caught with his/her hand in the jar: it simply defies reason.

    But, as has just been pointed out, this report doesn’t account for all relevant factors. This means it is just another example of what is in the links I posted: manipulation of statistics. They can be made to say anything, especially when they are used by those of us with an agenda. At least, in the case of those of us who seem to care most about solid econoic policy, it would seem that JFK stands with us. If only he hadn’t been a DEMOCRAT!

  4. There is another, easier way to PROVE this post and the report it is based on are wrong. If top tax rates do not effect the economy, then let’s tax the rich at 100%, and capital gains at 100% then sit back and watch the good times roll….to other countries.

    Do something like that and I GUARANTEE the “rich” will stop investing and their capital will flee this nation. Guess what happens to the economy then.

    See, simple reason defeats liberal logic every time 😉

      • I used to accuse you of being deliberately obtuse, B, I apologize. I realize now that it’s just you.

        ME? Then how do you explain this:

        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.

        When you KNOW — when THE WORLD KNOWS — that was about perjury, not sex. And this is just one of manny such assertions you have made. Greg, you have swallowed the Leftist BS: hook, line, sinker and LEADER!

  5. Pingback: If Tax Increases Do Not Harm The Economy, Then Raise taxes On The Poor To 50% | The Rio Norte Line

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