Eliot Spitzer - Looking at the Data
"The reduction in the top tax rates appears to be uncorrelated with saving, investment, andproductivity growth. The top tax rates appear to have little or no relation to the size of theeconomic pie. However, the top tax rate reductions appear to be associated with theincreasing concentration of income at the top of the income distribution."
The report presents the sort of analysis many of us have been discussing for years, thoughdone much more rigorously: tax rates were at the highest when growth was at its peak, andthe reduction in rates has not had any discernible impact on the types of investment that leadto growth. You can read the full report linked at our website. Rather than acknowledge the findings, however, the Republican efforts have been directed athaving the report withdrawn. It is a fascinating story in its own right - reminiscent of a differentera , when news the government didn't like was simply suppressed. But leave that for anotherday. The important point here is the scientific conclusion reached by the study: raising the top taxrate to 39.6% will not have any of the damaging consequences that the Grover Norquists ofthe word suggest. A week after the political and ideological battle to support slightly highertaxes on the wealthy was won, we now also have a numbers-based analysis supporting thesame course. Facts matter. And in this case, fairness wins. That's My View.