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Thursday, September 20, 2012

What The Numbers Show About Taxes and Economic Growth

Source: New York Times and Bureau of Economic Analysis via Haver Analytics

Do tax cuts lead to economic growth? David Leonhardt of the The New York Times says the data does not support the claim.

Leonhardt charted the numbers on taxes and economic growth over the last 25 years and found that tax cuts were not followed by economic growth.

On the other hand, the tax increases passed by the first President Bush and President Clinton were followed by an economic boom and a rapid rise in incomes.

Leonhardt says that while it may be true that some liberal put too much emphasis on the distribution of the pie and not enough on growth, people who propose tax cuts have yet to explain how those cuts will lead to economic growth.

Guest:


Other stories from Thursday's show
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