Heather Cox Richardson points out:
When Ronald Reagan called for tax cuts in 1980, he argued that tax cuts would concentrate money in private hands, enabling investors flush with cash to build the economy. That growth would keep tax revenues stable even with the lower rates. That was the argument, but it never came to pass. In fact, a 2022 study by political economists David Hope and Julian Limberg shows that “tax cuts for the rich…do not have any significant effect on economic growth or unemployment,” but they do “lead to higher income inequality in both the short- and medium-term” https://heathercoxrichardson.substack.com/p/may-23-2023
So, tax cuts for the wealthy don’t work as they had been advertised and pitched.
Wow, who knew?
And yet, today’s GOP still refuses to ask the wealthy to pay their fair share in taxes.
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