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Research shows that tax cuts for the top 5% have no effect on job creation in the subsequent two...

Research shows that tax cuts for the top 5% have no effect on job creation in the subsequent two years but they do for the bottom 95%, says ex-Clinton economic adviser Laura D'Andrea Tyson along with Owen Zidar, also a former White House economist. Consumption goes up more following tax reductions for the latter group, which leads to increased demand - a "primary determinant" in companies' employment decisions.
Comments (5)
  • When 50% of that other 95% aren't paying any taxes already, how do we give them a "tax cut?" Oh, she means a gift.
    21 Oct 2012, 07:46 AM Reply Like
  • Statistics lie and liars use statistics to make their point.
    21 Oct 2012, 07:51 AM Reply Like
  • Of course there's research to show otherwise.

     

    http://bit.ly/Tg1llw
    21 Oct 2012, 08:16 AM Reply Like
  • Never let the facts get in the way of a good theory.
    21 Oct 2012, 01:55 PM Reply Like
  • They went to a lot of trouble to say that people who make less money will spend anything you give them. As they boost aggregate demand yes that drives employment but then you have to keep the tax decrease in place to keep the demand higher.

     

    The problem they have is that our tax receipts are so heavily weighed towards the top 5% anytime you cut taxes it is obvious they are going to get more back.

     

    Talking about the top 5% as one homogeneous group is not helpful as you have families making $200K in the same group as millionaires and billionaires.
    21 Oct 2012, 08:39 PM Reply Like
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