Wednesday, December 16, 2020

Another capitalist myth exposed


 There is no trickle-down effect from tax cuts. Instead tax cuts for the rich produces inequality without providing much for anyone else.

 David Hope of the London School of Economics and Julian Limberg of King’s College London studied income, capital and assets in 18 OECD countries over the past half century and found that only those who were directly affected the reduction in taxation benefited, and it did little to promote jobs or growth for all other. 

Their findings counter arguments, often made that policies which appear to disproportionately reward richer individuals eventually feed through to the rest of the economy. 

“Our research suggests such policies don’t deliver the sort of trickle-down effects that proponents have claimed,” Hope said.

Fifty Years of Tax Cuts for Rich Didn’t Trickle Down, Study Says - Bloomberg

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