Dec 17, 2020

Tax cuts for the rich – period

A new study from the LSE looks at the effects of tax cuts for the rich in 18 OECD countries over the 50-year period from 1965 to 2015. The conclusion:

We find that major tax cuts for the rich push up income inequality, as measured by the top 1% share of pre-tax national income. The size of the effect is substantial…. Turning our attention to economic performance, we find no significant effects of major tax cuts for the rich. More specifically, the trajectories of real GDP per capita and the unemployment rate are unaffected by significant reductions in taxes.

One more nail in the coffin of “supply-side economics”. Read more here.