Studies say boosting taxes on high earners would not hurt economy
The literature suggests that if the alternative to raising taxes is larger deficits, then modest tax increases on high-income households would likely be more beneficial for the economy over the long run.
Three leading tax economists recently concluded in a review of the evidence, “there is no compelling evidence to date of real responses of upper income taxpayers to changes in tax rates.” The literature suggests that if the alternative to raising taxes is larger deficits, then modest tax increases on high-income households would likely be more beneficial for the economy over the long run.
The research in the field does not provide strong evidence that modestly raising tax rates at the top of the income scale would have significant growth-reducing effects on labor supply, taxable income, savings and investment, or entrepreneurship.
Go
here to read the Center on Budget and Policy Priorities analysis.
Tags: Administration News
