For years, economists have scoffed at the notion that tax breaks for the wealthy benefit the rest of society. The policy failed in the early 1900s when it was known as Horse and Sparrow economics. And it failed in the 1980s when it was called Trickle Down economics. Indeed, even the architects of Reagans economic policy now admit the policy is a failure.
The notion was further debunked in the 1990s when President Clinton raised taxes on the wealthy resulting in millions of new jobs.
But evidence has never stopped Teapublicans from claiming that the only way to create jobs is to cut taxes for the wealthy and multi-national corporations. They continue to claim that tax cuts are the only incentives for the so-called job creators. Of course, this years crop of Teapublican candidates is pursuing the same policy. Theyre counting on voters who are frustrated by the slow recovery from the enormous economic crisis they created to buy into the same old malarkey again.
Teapublicans deny that they are responsible for the crisis and that their obstructionism is responsible for the slow recovery. They say, Trust us. Tax cuts will work this time.
Unfortunately for Teapublicans, the non-partisan Congressional Research Service created a report that, once again, found that lower marginal tax rates for the wealthy have no effect on economic growth and job creation. So what did the Teapublican leadership do with this information? Did it sway their opinions? Did they modify their policy?
According to a story in The New York Times, Senate Teapublicans led by Mitch McConnell persuaded the Congressional Research Service to withdraw the report. After all, they wouldnt want the voting public to know the truth!