Tuesday, September 6, 2011

From CAP: Lowering taxes doesn’t lead to job growth

As we await the President’s job speech this week – and in light of the spending cuts the Super Committee is beginning to devise – I’d like to share an article written this past June by Michael Linden at the Center for American Progress. “Rich People’s Taxes Have Little to Do with Job Creation” reminds us that cutting taxes for the wealthy doesn’t have the economic impact we’re often promised it will.

To quote the article: “When the marginal tax rate was 50 percent or above, annual employment growth averaged 2.3 percent, and when the rate was under 50, growth was half that. In fact, if you ranked each year since 1950 by overall job growth, the top five years would all boast marginal tax rates at 70 percent or higher. The top 10 years would share marginal tax rates at 50 percent or higher.”

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