NO RELATIONSHIP BETWEEN CUTTING TOP RATES & ECONOMIC GROWTH – SEVENTY YEARS OF DATA

“…[T]he reduction in the top tax rates has had little association with saving, investment, or productivity growth. It is reasonable to assume that a tax rate change limited to a small group of taxpayers at the top of the income distribution would have a negligible effect on economic growth.”

That is the conclusion from examination of seventy years of tax and economic data summarized in a 2012 report for the Congressional Research Service which “examine[d] top statutory individual income tax rates since 1945 in relation to these arguments and [sought] to explore what, if any, association exists between the top statutory tax rates and economic growth. The analysis examines the correlation between the top tax rates and economic growth….”

SOURCE http://digitalcommons.ilr.cornell.edu/cgi/viewcontent.cgi?article=1987&context=key_workplace