Monday, November 19, 2012

GOP Governors Evade Question On Tax Cuts For Wealthy

President Obama has called for higher taxes on the wealthy. The American people re-elected him, and most support his position. Regardless, the Republicans can't bring themselves to agree to end the Bush tax cuts for the top two percent. On Fox News Sunday, Chris Wallace asked Gov. Bobby Jindal of Louisiana and Gov. Scott Walker of Wisconsin why they continue to protect the rich and hold up a tax deal that will benefit the middle class. Watch as they twist themselves into rhetorical knots and evade the question:


Eric Taylor said...

Two long winded NON-ANSWERS. It is clear they do not have an answer to why the GOP, the party of lower taxes, won't lower the taxes right now on 98% of americans. If they believe lower taxes will generate growth, go ahead and get the sure thing. Nearly everyone believes that raising taxes on the middle class rus a high risk of generating an additional slump in demand.

But the data is stacking up that lowering taxes on the wealthiest has no correlation with GDP growth. The non-partisan Congressional Research Service completed an economic analysis of the top marginal tax rates since 1945, which includes periods when the top marginal tax rates were as high as 90% compared to 28% briefly in the Reagan years and 35% now. "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, ...".

Can it be any more reasonable than to ask why not give the tax breaks to the 98% now, since we all agree on this? Neither of them answered this question.

Jeff Tone said...

Eric: They prefer to hold the rest of us hostage until tax rates for the wealthiest are kept at current levels. There's no justification; they simply want to benefit those who sponsor their campaigns. They also don't care if the middle class has to pay the price.

I wrote a post, "65-Year Study: Tax Cuts Lead To Economic Inequality, Not Growth," that includes the material you cite: