Some one get Mitch McConnell a pacifier

[sheshe2]

Someone Get Mitch McConnell a Pacifier
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Posted on 11/01/2012 at 6:30 pm by JM Ashby


Last month the Congressional Research Service, the non-partisan congressional study group that scores congressional proposals, issued a report that found “no correlation” between tax cuts for the rich and job creation.

After a swift bout of kicking and screaming from top congressional Republicans, the CRS withdrew the report.


The decision, made in late September against the advice of the agency’s economic team leadership, drew almost no notice at the time. Senator Charles E. Schumer, Democrat of New York, cited the study a week and a half after it was withdrawn in a speech on tax policy at the National Press Club. [...]

“This has hues of a banana republic,” Mr. Schumer said. “They didn’t like a report, and instead of rebutting it, they had them take it down.” [...]

Senate Republican aides said they protested both the tone of the report and its findings. Aides to Mr. McConnell presented a bill of particulars to the research service that included objections to the use of the term “Bush tax cuts” and the report’s reference to “tax cuts for the rich,” which Republicans contended was politically freighted.

Aw. They didn’t like the tone of the report. Their feelings were hurt by use of the terms “Bush tax cuts” and “tax cuts for the rich,” both of which are accurate descriptors.

According to the report from the New York Times, Republicans also objected to the report on economic grounds saying that the report did not take into account “the time lag of economic policies.” Meaning they believe tax cuts create jobs if you simply give Tax Cut Magic enough time to fully materialize.

Curiously, after ten years of being lorded over by the Bush Tax Cuts, they have not be bequeathed us with a flood of jobs.

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[Jim__]

1. The time lag, of course. When huge numbers of jobs were created during Clinton's term, repugs ...

... actually claimed they were due to the Reagan tax cuts. I wouldn't be surprised to learn that the 5 million jobs created under Obama were due to the Reagan tax cuts.

[DreamGypsy]

2. The concluding remarks from the report.

FYI:

Here are the complete Concluding Remarks from the CRS report: Taxes and the Economy: An Economic
Analysis of the Top Tax Rates Since 1945

The top income tax rates have changed considerably since the end of World War II. Throughout
the late-1940s and 1950s, the top marginal tax rate was typically above 90%; today it is 35%.
Additionally, the top capital gains tax rate was 25% in the 1950s and 1960s, 35% in the 1970s;
today it is 15%. The average tax rate faced by the top 0.01% of taxpayers was above 40% until
the mid-1980s; today it is below 25%. Tax rates affecting taxpayers at the top of the income
distribution are currently at their lowest levels since the end of the second World War.

The results of the analysis suggest that changes over the past 65 years in the top marginal tax rate
and the top capital gains tax rate do not appear correlated with economic growth. The reduction in
the top tax rates appears to be uncorrelated with saving, investment, and productivity growth. The
top tax rates appear to have little or no relation to the size of the economic pie.

However, the top tax rate reductions appear to be associated with the increasing concentration of
income at the top of the income distribution. As measured by IRS data, the share of income
accruing to the top 0.1% of U.S. families increased from 4.2% in 1945 to 12.3% by 2007 before
falling to 9.2% due to the 2007-2009 recession. At the same time, the average tax rate paid by the
top 0.1% fell from over 50% in 1945 to about 25% in 2009. Tax policy could have a relation to
how the economic pie is sliced—lower top tax rates may be associated with greater income
disparities.