Wednesday, September 19, 2012

Supply-Side Utopia: Republican Econ 101


By Dale Bowling

You may have noticed two things in the news in the last few days.

One is widely publicized; a prominent Republican suggested that 47% of Americans weren’t taking responsibility for their lives because they don’t pay income taxes.

People like Grandma who paid into the system for decades so she could collect Social Security and Medicare.  

Or people who make so little money that they aren’t required to pay federal income tax, i.e. the working poor.

Remember every time they ask you if you want fries with that, the GOP says they’re not taking responsibility!

The second more poorly reported news item is a study conducted by the Congressional Research Service showing that tax cuts for the wealthy actually don’t create economic growth.

There have been a lot of these studies over the years showing that Supply-Side Economics (tax cuts for rich people fuel economic growth) doesn’t work, but we don’t need them when any examination of American history shows the same thing.

Taxes were really high in the 50s (top income tax rates were 90%, capital gains was 35%) yet economic growth was substantially higher than today.

Real GDP growth averaged 4.2% per year under Eisenhower. Under Bush after the biggest tax cuts in American history it was 1.7%

Sweden whose taxes are way higher than ours showed more growth in the 2000s than the US. From 2000-2010, Sweden grew 2.31% per year compared with the US at 1.85%.

Lower taxes for the Wealthy, benefit the Wealthy. It just doesn’t “trickle down” to the rest of America. Studies show that.

Democrats support everyone contributing to America given their ability to do so. If you’re barely keeping your head above water, then you ought to be paying less than someone with five houses. That's common sense. Vote Democrat in November for a fairer, better America.

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