Haven't progressive taxes consisently been associated with economic growth?

[Onlooker]

Correct me if I'm wrong, but when our tax rate was progressive, our economy was stronger.

Carter tried very hard to make the tax system more progressive, but Congress revolted and instead cut taxes. We had a terrible recession.

Clinton raised taxes on the rich. We had an economic boom.

Bush cut taxes on the rich. We are in a terrible recession.

Reagan cut taxes, but had to deficit spend by twice as much in order to grow the economy. The fact is progressive taxes are a good investment for wealthy.

http://2.bp.blogspot.com/_qAjRg43KuhY/SQwPD1L4fFI/AAAAAAAAAQw/XH6S0ky9g-I/s400/Tax+Rate.jpg

[el_bryanto]

1. Actually no they aren't

You have to remember that whether or not the poor have healthcare, the wealthy will have it. The wealthy are better off screwing the rest of us, particularly the idle wealthy. Of course it weakens society and makes America as a nation weaker than it needs to be, both economically and morally. But look at how the wealthy live in third world plutocracies; they generally do ok.

Until the revolution i suppose.

Bryant

[Anarcho-Socialist]

2. the Bush tax-cuts were a squandering of the Clinton-era surplus

The first recession of the Bush43 years was more to do with the 90s boom running its course and leading to an overproduction of goods and services with liquidity unable to keep pace.

The Bush tax-cuts were a political giveaway for his core-supporters but presented in the guise of 'restarting' the economy, although in truth it was a deeply inefficient way to do it. The upper rate tax cuts did not filter down into the pockets of the lower-90% of income earners. To make up for this, the US Fed aggressively cut rates in order to get liquidity into the main economy.

This led to an overextension of credit, and thus a bubble economy in housing and the stock market. This is what mainly caused the second Bush43 recession to happen when it did.

I do agree that progressive taxation leads to greater stability and mean wealth in the longer term. Higher personal taxes promotes investment in research & development in industry, higher spending on social services and education (which benefit society and the economy as a whole). Another side-effect is that talent doesn't get sucked into the financial services industry where their talents are utilised in developing tax loopholes and hiding untaxed income. This talent would benefit society more in other areas.

[madrchsod]

3. yes...progressive taxes do not hinder economic growth