Nonpartisan Tax Report Withdrawn After G.O.P. Protest

  1. A U.S. government agency has withdrawn a report that challenged Republican ideas about taxes and economic growth - an action that drew fire from Democrats who accused it on Thursday of bowing to political pressure.

    Throughout the late-1940s and 1950s, the top marginal tax rate was typically above 90%; today it is 35%. Additionally, the top capital gains tax rate was 25% in the 1950s and 1960s, 35% in the 1970s; today it is 15%. The real GDP growth rate averaged 4.2% and real per capita GDP increased annually by 2.4% in the 1950s. In the 2000s, the average real GDP growth rate was 1.7% and real per capita GDP increased annually by less than 1%.

    There is not conclusive evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the top tax rates and economic growth. Analysis of such data suggests the reduction in the top tax rates have had little association with saving, investment, or productivity growth.

    However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution. The share of income accruing to the top 0.1% of U.S. families increased from 4.2% in 1945 to 12.3% by 2007 before falling to 9.2% due to the 2007-2009 recession. The evidence does not suggest necessarily a relationship between tax policy with regard to the top tax rates and the size of the economic pie, but there may be a relationship to how the economic pie is sliced.
    Download the report: Taxes and the Economy: An EconomicAnalysis of the Top Tax Rates Since 1945

    Washington Post: The tax report Senate Republicans don't want you to see

    Reuters: US agency withdraws tax report challenging Republican ideas

    The New York Times: Nonpartisan Tax Report Withdrawn After G.O.P. Protest
    Last edit by Joe V on Nov 2, '12
  2. 5 Comments

  3. by   tewdles
    Interesting information.

    On a related but different topic...I heard on NPR this morning that Eric Cantor has been campaigning for Romney on a "bipartisan" message...about how Romney and Cantor will reach across the aisle to solve the economic woes of the country.

  4. by   mediajunkie650
    When the GOP suppresses inconvenient truths | Steve Benen - The Maddow Blog
    We talked yesterday about the non-partisan Congressional Research Service pulling a recent report that documented what many already knew: giving tax breaks to the rich helps concentrate wealth at the top, but it does not boost the economy. Republican lawmakers, led by Senate Minority Leader Mitch McConnell (R-Ky.), had the report killed.

    More information
    is coming to light.

    Thomas Hungerford, the CRS researcher who produced the report, told HuffPost that he stands by it. "Basically, the decision to take it down, I think The New York Times article basically got it right, that it was pressure from the Senate minority to take it down," Hungerford said. "CRS reports go through many layers of review before they're issued and as far as the tone and the conclusions go, people who specifically look at the writing and the tone said it was okay. So it's not going to be that and as I can tell you outright, I stand by the report and the analysis in the report."

    Hungerford said that he had never experienced suppression like this before....

    For its part, McConnell's office insists "people outside of Congress" also raised concerns about the CRS report, but Tim Noah explained that these outsiders are apparently limited to conservative think tanks, including the Heritage Foundation.

    It's important to understand that the Congressional Research Service, generally recognized as Congress' own think tank, has a well-deserved reputation for non-partisanship. The CRS is counted on to provide lawmakers with the most reliable and accurate information available, and the notion that partisan lawmakers can pressure, censor, and possibly even intimidate independent researchers is simply unacceptable.

    In other words, we just can't have public offices' scholarship being stifled because Republicans find reality politically inconvenient. Our system of government isn't supposed to work this way.
  5. by   TopazLover
    There is something about inconvenient truth. i just read about FL having a law that says yu can't talk about climate change because it will change land values. Duh, land under the ocean is not worth much. Don't they think we can figure it out? - Similar to the issue of stuffing the reports away - We can see. If you pay attention to multiple news sources you are bound to get some inconvenient truth handed to you. When you hide it is likely that the truth will come out and you will look foolish. Amazes me that many don't see it this way.
  6. by   azhiker96
    In recent years, all the rates were adjusted down at the same time. That would lead me to believe that dropping the rates for any tax payers has little to no effect on savings, growth, etc. Sounds like a good reason to let ALL the Bush tax cuts expire since they don't contribute to growth but do contribute to the national debt.
  7. by   herring_RN
    I wouldn't mind paying the rate i paid before the tax cuts. Cuts to police and teachers have decreased quality of life for everyone.