Bush, and the whole right wing crowd, like to say that taxes “take money out of the economy.” The New York Times has an article, Do Lower Taxes Mean Faster Economic Growth?
But the degree of misleading information emanating from both Washington and the media about how taxes affect the economy is disturbing. As I listen to the radio, watch TV news and read a variety of newspapers, it seems that quite a few Americans, including economics writers and media hosts, think that low-tax countries unquestionably grow faster than high-tax economies. Right and left, they seem to attribute more rapid growth in America to lower taxes.
What may surprise them is that there is no evidence for that. “You can make a theoretical case that high taxes impede economic growth, but it is just not supported by the evidence in the U.S. or across countries,” said William Easterly, a former World Bank economist soon to join the faculty of New York University.
I thought that this was a settled question decades ago. Redistribution of income from the top to the broad consuming public stimulates our CONSUMER ECONOMY. Clinton raised taxes at the top and cut taxes at the bottom and look what happened. Bush cut taxes at the top and cut services for the middle and bottom and look what happened. Well, DUH!
There’s more – the whole article is worth reading.