Jerry Wechsler
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thread 1/5
The new paper, by David Hope of the London School of Economics and Julian Limberg of King's College London, examines 18 developed countries — from Australia to the United States — over a 50-year period from 1965 to 2015.
https://www.cbsnews.com/ne...
02:23 PM - Apr 21, 2024 (Edited)
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Jerry Wechsler
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thread 2/5
The study compared countries that passed tax cuts in a specific year, such as the U.S. in 1982 when President Ronald Reagan slashed taxes on the wealthy, with those that didn't, and then examined their economic outcomes.
02:23 PM - Apr 21, 2024
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Jerry Wechsler
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thread 3/5
The incomes of the rich grew much faster in countries where tax rates were lowered. Instead of trickling down to the middle class, tax cuts for the rich may not accomplish much more than help the rich keep more of their riches and exacerbate income inequality, the research indicates.
02:23 PM - Apr 21, 2024
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Jerry Wechsler
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"Based on our research, we would argue that the economic rationale for keeping taxes on the rich low is weak," Julian Limberg, a co-author of the study and a lecturer in public policy at King's College London, said in an email to CBS MoneyWatch.
02:24 PM - Apr 21, 2024
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Jerry Wechsler
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thread 5/5
"In fact, if we look back into history, the period with the highest taxes on the rich — the postwar period — was also a period with high economic growth and low unemployment."
02:25 PM - Apr 21, 2024
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