GOP has hissy fit over study showing tax cuts don't stimulate the economy

[Indy Texas]

...so much that the Congressional Research Service cried uncle and withdrew it.

http://www.nytimes.com/2012/11/02/business/questions-raised-on-withdrawal-of-congressional-research-services-report-on-tax-rates.html?ref=business

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[○∙◄☻¥tπ[╪AV┼cVê└]

One of the most ridiculous things I can think that has ever happened in this country is that the 2003 Bush tax cuts, which contained enormous tax cuts for the rich that didn't take affect for another several years were somehow an economic stimulus. The so called media of course went along with this nonsense, but just because no one called the Republicans on the insanity of that didn't mean that it wasn't totally absurd.

[DC Al Fine]

Tax cuts do stimulate the economy... provided tax rates are on the right side of the Laffer curve. They obviously aren't in America and haven't been since Reagan.

[courts]

One of the most ridiculous things I can think that has ever happened in this country is that the 2003 Bush tax cuts, which contained enormous tax cuts for the rich that didn't take affect for another several years were somehow an economic stimulus. The so called media of course went along with this nonsense, but just because no one called the Republicans on the insanity of that didn't mean that it wasn't totally absurd.

[🐒Gods of Prosperity🔱🐲💸]

Tax cuts do stimulate the economy... provided tax rates are on the right side of the Laffer curve. They obviously aren't in America and haven't been since Reagan.

The Laffer curve doesn't show when tax cuts start to stimulate the economy. It shows when tax cuts start to increase government revenues due.  Keynesians , neoclassicists and Austrians agree in principle that tax cuts stimulate the economy. The question is how much this stimulation is counteracted by economic drag from less government spending and/or larger deficits.

[DC Al Fine]

Tax cuts do stimulate the economy... provided tax rates are on the right side of the Laffer curve. They obviously aren't in America and haven't been since Reagan.

The Laffer curve doesn't show when tax cuts start to stimulate the economy. It shows when tax cuts start to increase government revenues due.  Keynesians , neoclassicists and Austrians agree in principle that tax cuts stimulate the economy. The question is how much this stimulation is counteracted by economic drag from less government spending and/or larger deficits.

Damn, I thought that was Laffer, guess I was wrong. Anyway i recall seeing a curve illustrating the affects of tax cuts at various levels. Basically it showed cutting taxes in Denmakr would be much more effective than say America.

[🐒Gods of Prosperity🔱🐲💸]

Tax cuts do stimulate the economy... provided tax rates are on the right side of the Laffer curve. They obviously aren't in America and haven't been since Reagan.

The Laffer curve doesn't show when tax cuts start to stimulate the economy. It shows when tax cuts start to increase government revenues due.  Keynesians , neoclassicists and Austrians agree in principle that tax cuts stimulate the economy. The question is how much this stimulation is counteracted by economic drag from less government spending and/or larger deficits.

Damn, I thought that was Laffer, guess I was wrong. Anyway i recall seeing a curve illustrating the affects of tax cuts at various levels. Basically it showed cutting taxes in Denmakr would be much more effective than say America.

That could well be the Laffer curve if it was showing that cutting taxes in Denmark is more likely to increase tax revenues than doing so would in the US.   The optimal tax for economic growth (some would say it's zero!) and the optimal tax for government revenue are two different things - though the latter depends on the former. It's easy to get these confused.

[So rightwing that I broke the Political Compass!]

Obama's bureacrats publish propaganda under the guise of economics, Republicans object. How is that a hissy fit?

[opebo]

Obama's bureacrats publish propaganda under the guise of economics, Republicans object. How is that a hissy fit?

You're confused there - Laffer's your propagandist, Romneyham.

[DC Al Fine]

Obama's bureacrats publish propaganda under the guise of economics, Republicans object. How is that a hissy fit?

You're confused there - Laffer's your propagandist, Romneyham.

Laffer if I recall, did not put numbers on his curve, so why do you think he is a hack? Do you think working class people  might put in fewer man hours if they pay 99% tax?