Congressional Republicans have been discovered to have gotten a study by the Congressional Research Service hidden as it contradicts main Republican philosophical tenets. The report found that decreasing top tax rates and capital gains taxes do not fuel economic growth as much as income inequality.
Report conflicted with ideas, so it was hidden
In Sept, the Congressional Research Service, a division of the Library of Congress and a non-partisan body that, naturally, conducts research for the purposes of informing Congress of whatever they want to know, released a report on the impact of top income tax rates and capital gains taxes on economic growth, according to BusinessWeek.
Republicans leaned on the CRS and erased the report off the site recently, according to the New York Times.
The karma ran over the dogma
The report was initially requested by the U.S. Senate Finance Committee. The reason that was given for having the report taken was that there were objections to its “tone,” and also that it didn't take into account economic effects of “other policies” such as the Federal Reserve's federal funds rate and so forth.
You can go to the Huffington Post or Washington Post to check out the 23-page report called “Taxes and Economy.” Researcher Tom Hungerford looked at 50 years of economic data which showed that cutting taxes is not always the answer.
What did it say?
The report is not the only one that showed tax rates on highest income earners are not linked to economic growth. The Washington Post and New York Times point out that the 50 years of economic data from the CRS found that this is true.
Right now, the top tax rate is 35 percent and capital gains tax is 15 percent. Gross Domestic Product grew at 4.2 percent a year and per capita at 2.4 percent per year during the 1950s. From 2000 to 2010, GDP grew 1.7 percent per year and per capita at less than 1 percent.
Capital gains were at 25 percent while the top tax rate in the 1950s could be as high as 90 percent. That means that increased growth and lower taxes are not correlated.
Between 2007 and 2009, the top 0.1 percent of households had 9.2 percent of the total income. In 1945, only 4.2 percent of total income went to the top 0.1 percent of earners. That means that lower income taxes only helps people who do not need payday loans already.