Tax cuts for the rich only increase wealth disparity


No, the 1% aren’t the job creators—that’s the middle class and working class. Tax cuts for the 1%, of course, don’t create jobs, they just create greater wealth disparity:

“The authors set out to examine all instances of major tax reductions on the rich in 18 OECD countries between 1965 and 2015 and identify the results . . . There was no noticeable effect on growth. Or on unemployment. So what did the tax cuts accomplish?

“We find that major tax cuts for the rich push up income inequality, as measured by the top 1% share of pre-tax national income. The size of the effect is substantial: on average, each major tax cut results in a rise of over 0.7 percentage points in top 1% share of pre-tax national income.

 

“On the income inequality side, the results do not closely align with the theory that the rich have greater incentives to work and invest when their taxes are cut, given that we do not find any statistically significant effects on growth, unemployment or investment from cutting taxes on the rich.”

We can look forward to more of the same in the next four years. All those middle class and working class folks who voted for Trump will see him shoveling more money at the 1% and crumbs for the rest. MAGA=Making America’s 1% Greater Again.

https://jabberwocking.com/what-do-tax-cuts-on-the-rich-accomplish-can-you-guess/#comments




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