There is a reason that the rich don’t suffer in a recession; that middle-class wages have been stagnant for 30 year; that the majority of the nation’s wealth is in the hand of the top 1%. Conservative tax policy has dominated for 30 years. And in this Great Recession, with profits way up, there is not need to hire more people. And in this context, with a skyrocketing national debt, with millions out of work, the Republicans can still talk endlessly of how tax cuts are the answer to creating jobs. No. Tax cuts are the answer to enriching the already-wealthy.
One of the fundamental differences between Republicans and Democrats is their view of taxes. Democrats believe in progressive taxation–that is, taxing the rich at a higher percentage because a flat tax would take a larger percentage of income from those with lower income. Republicans believe that reducing taxes for high-income earners is better for the economy because it will “trickle down” to the lower income workers in the form of jobs; and they believe that lowering taxes for the rich increases government tax revenues. But is this claim true?
What economic policies lead to greater economic health? And what political policies will lead to better economic outcomes? These are complex questions, and can be difficult to test scientifically. However, it is useful to look at case studies in an effort to understand what policies work and what policies lead to disaster. Let’s take a […]