Monday, September 17, 2012

Deflating Another Myth from the Rich and Mighty

This morning Robert Frank of CNBC reported a study that blows wide open of the major myths promulgated by the rich and mighty and preached as gospel by Presidential candidate Mitt Romney:
Cutting taxes for the wealthy does not generate faster economic growth, according to a new report. But those cuts may widen the income gap between the rich and the rest, according to a new report.

A study from the Congressional Research Service -- the non-partisan research office for Congress -- shows that "there is little evidence over the past 65 years that tax cuts for the highest earners are associated with savings, investment or productivity growth."

In fact, the study found that higher tax rates for the wealthy are statistically associated with higher levels of growth.
Of course the current generation of Republicans have never been swayed by little things such as the objective collection and analysis of hard data (particularly when the analysts are non-partisan). They know that facts do not win elections. Elections are won by those who tell the best stories, and my guess is that the consciousness industry of the rich and mighty is already hard at work to put out a set of stories to distract from (if not discredit) this latest insight into the workings of the American economy.

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