The supposed benefits of trickle down economics where the highest marginal tax rates… 4


The supposed benefits of trickle down economics where the highest marginal tax rates are slashed with the expectation that the wealthy will use that extra money in the bank to reinvest and create more jobs are purely theoretical. All the empirical evidence that has come from periods when the top tax rates have been lowered show the exact opposite.  Their is no positive correlation between income tax rates and job creation and in fact the periods of highest job growth have come when the top tax rate was upwards of 40%.

Reshared post from +Koushik Dutta

Obligatory chart of tax rates on the rich versus job growth. The empirical effects of "trickle down" economy.

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4 thoughts on “The supposed benefits of trickle down economics where the highest marginal tax rates…

  • Jack Guthrey

    I'm no statistician (I didn't even take math in college!) but there doesn't seem to be any correlation in the numbers. That may be the point of this graph – I was just hoping to have something to show Republicans and yell HAH!

  • Jack Guthrey

    I'm no statistician (I didn't even take math in college!) but there doesn't seem to be any correlation in the numbers. That may be the point of this graph – I was just hoping to have something to show Republicans and yell HAH!

  • Tristan Cunha

    Yeah, that's pretty much a no correlation data set. Which makes sense because saving and investment isn't a great way to spurn economic growth, even though it seems to make intuitive sense. Buy what really drives an economy is spending, and saving and investing is about the slowest and least efficient way to turn government spending into private sector spending. Especially when the spending (tax breaks) is targeted at high income brackets. People who have immediate needs are much more likely to spend that money, and quickly.

  • Tristan Cunha

    Yeah, that's pretty much a no correlation data set. Which makes sense because saving and investment isn't a great way to spurn economic growth, even though it seems to make intuitive sense. Buy what really drives an economy is spending, and saving and investing is about the slowest and least efficient way to turn government spending into private sector spending. Especially when the spending (tax breaks) is targeted at high income brackets. People who have immediate needs are much more likely to spend that money, and quickly.