Data on taxes, investment, and growth disproves conservative economics
Mike Kimel has been doing great work analyzing real-world data on the effect of U.S. income tax rates on economic growth and investment. This pretty much summarizes his findings so far:
Put another way – conservatives and libertarians have a very, very flawed theory of the world. At the very least it does not conform at all with historical US data. At all. Which of course has serious consequences; because that theory is somewhat dominant in the political sphere, and has been since the late 60s. The end result – slower economic growth for all of us since the late 60s. That has real consequences for real people – 310 million of us. That should have repercussions for the consciences of economists who peddle this garbage, though apparently it doesn’t.
The Tax Rate That Maximizes Economic Growth
To maximize real economic growth in the United States, the top marginal income tax rate should be about 65%, give or take about ten percent.