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

[Belsnickel]

https://www.bloomberg.com/news/articles/2020-12-16/fifty-years-of-tax-cuts-for-rich-didn-t-trickle-down-study-says?sref=Ptu9QECN

Quote:Tax cuts for rich people breed inequality without providing much of a boon to anyone else, according to a study of the advanced world that could add to the case for the wealthy to bear more of the cost of the coronavirus pandemic.

The paper, by David Hope of the London School of Economics and Julian Limberg of King’s College London, found that such measures over the last 50 years only really benefited the individuals who were directly affected, and did little to promote jobs or growth.

“Policy makers shouldn’t worry that raising taxes on the rich to fund the financial costs of the pandemic will harm their economies,” Hope said in an interview.

That will be comforting news to U.K. Chancellor of the Exchequer Rishi Sunak, whose hopes of repairing the country’s virus-battered public finances may rest on his ability to increase taxes, possibly on capital gains -- a levy that might disproportionately impact higher-earning individuals.

It would also suggest the economy could weather a one-off 5% tax on wealth suggested for Britain last week by the Wealth Tax Commission, which would affect about 8 million residents.

The authors applied an analysis amalgamating a range of levies on income, capital and assets in 18 OECD countries, including the U.S. and U.K., over the past half century.

Their findings published Wednesday counter arguments, often made in the U.S., that policies which appear to disproportionately aid richer individuals eventually feed through to the rest of the economy. The timespan of the paper ends in 2015, but Hope says such an analysis would also apply to President Donald Trump’s tax cut enacted in 2017.

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

In other news...

[Benton]

Trickle down economics never worked, but served as a justification for a whole lot of greed.

[GMDino]

I mean any one of us could have done that study.  It won't change anything though.  Greed in an incurable disease.

[Au165]

(12-17-2020, 09:53 AM)GMDino Wrote: I mean any one of us could have done that study.  It won't change anything though.  Greed in an incurable disease.

Right, like I said in another thread the issue is financial illiteracy. If voters can keep getting sold this then it doesn't matter if it's true or not. Hell, we are seeing this right now play out. Rather than direct payments to citizens like much of the industrialized world is doing we are potentially about to see another single $600 check for months while companies and corporations get billions. The crazy thing is we saw how rife with fraud and waste the PPP program was last time around.

[*michaelsean*]

I never cared about trickle down I just think taking half of someone’s income is obscene.

[fredtoast]

(12-17-2020, 10:32 AM)michaelsean Wrote: I never cared about trickle down I just think taking half of someone’s income is obscene.

What percentage is acceptable?

[Belsnickel]

(12-17-2020, 09:53 AM)GMDino Wrote: I mean any one of us could have done that study.  It won't change anything though.  Greed in an incurable disease.

There is a difference between what we all suspect and what researchers find using data and statistics.

[fredtoast]

(12-17-2020, 09:53 AM)GMDino Wrote:   Greed in an incurable disease.

Even the poor and middle class are greedy.

Everyone is.

[*michaelsean*]

(12-17-2020, 01:49 PM)fredtoast Wrote: What percentage is acceptable?

I’m good with maxing out at a third although that’s still high I try to be reasonable. And that’s just federal. Add all the other taxes and it’s ridiculous. Stop spending so much money and yes that means Republicans and yes that means the military.

[*michaelsean*]

Oh and I’d love to see the rich people in Congress vote for a 5% wealth tax. It’s one thing to tax their little six figure salary, but hit their wealth? And how exactly is the 5% raised? I doubt super rich people have 5% of their wealth in cash. Maybe they can dump stock? That might cause some issues.

[BigPapaKain]

*shocked Pikachu face*

[Goalpost]

(12-17-2020, 04:37 PM)michaelsean Wrote: Oh and I’d love to see the rich people in Congress vote for a 5% wealth tax. It’s one thing to tax their little six figure salary, but hit their wealth?  And how exactly is the 5% raised?  I doubt super rich people have 5% of their wealth in cash. Maybe they can dump stock?  That might cause some issues.

What is your threshold of super rich?  

[*michaelsean*]

(12-17-2020, 07:03 PM)Goalpost Wrote: What is your threshold of super rich?  

Jesus I don’t know. Even regular rich people are going to have a hard time coming up with 5% liquid.

[Belsnickel]

(12-17-2020, 07:59 PM)michaelsean Wrote: Jesus I don’t know. Even regular rich people are going to have a hard time coming up with 5% liquid.

We could just eat them, instead.

[GMDino]

(12-17-2020, 01:51 PM)Belsnickel Wrote: There is a difference between what we all suspect and what researchers find using data and statistics.

Clearly but as a kid who grew up in the 70's and 80's it was pretty clear Regan started us down a long road of failing the workers and middle class.

[GMDino]

(12-17-2020, 01:56 PM)fredtoast Wrote: Even the poor and middle class are greedy.

Everyone is.

No doubt greed can be in every class.

Not everyone is greedy though.

And the greedy ones at the top make it hard for anyone else.

[*michaelsean*]

(12-17-2020, 09:30 PM)Belsnickel Wrote: We could just eat them, instead.

I did just buy a new smoker and could use the practice.

[Benton]

So at what point do we discuss reparations?

[Au165]

(12-17-2020, 07:59 PM)michaelsean Wrote: Jesus I don’t know. Even regular rich people are going to have a hard time coming up with 5% liquid.

Not really. Jeff Bezos has unloaded about $10 Billion in Amazon stock this year alone, seemed pretty simple for him to come up with 5% of his net worth in cash.

[Sociopathicsteelerfan]

Trickle down does work, but it has to be tax cuts to the middle class. The middle class drives the economy.