Politicians rarely want to raise taxes on the rich. Joe Biden promised to do so but a closely divided Congress is already balking. They reviewed data over the last half-century in advanced economies and found that tax cuts for the rich widened inequality without having any significant effect on jobs or growth.
Nothing trickled down. Meanwhile, the rich have become far richer. Stock markets have been hitting record highs. More initial public stock offerings have been launched this year than in over two decades. A wave of hi-tech IPOs has delivered gushers of money to Silicon Valley investors, founders and employees. Yet at the same time, more than 20 million Americans are jobless, 8 million have fallen into poverty, 19 million are at risk of eviction and 26 million are going hungry.
The UK is already considering an emergency tax on wealth. The president-elect has rejected a wealth tax, but maybe he should be even more ambitious and seek to change economic thinking altogether. The practical alternative to trickle-down economics might be called build-up economics.
The rich themselves would benefit from doing so, as would everyone else. Only about half the U. Meanwhile, almost 8 million Americans have fallen into poverty since the start of the pandemic through November, according to new data released by the University of Chicago and the University of Notre Dame.
Rebuilding the economy and household wealth for low- and middle-class families are among the issues facing President-elect Joe Biden after he's inaugurated next month. Raising taxes on the rich and corporations could provide trillions of dollars in resources for helping the economic recovery, Zucman told CBS MoneyWatch.
Please enter email address to continue. Please enter valid email address to continue. Chrome Safari Continue. Be the first to know. Get browser notifications for breaking news, live events, and exclusive reporting.
In his speech to Congress on Wednesday night, Biden attacked trickle-down economics as an idea that has never worked. The poll was conducted after the speech. The theory, which asserts that tax breaks and other benefits for corporations and the wealthy will benefit everyone else, has been fiercely debated since Reagan made it a centerpiece of his economic strategy in the s.
A study by the London School of Economics of 50 years of data from 18 countries showed that the only significant effect of significant tax cuts to the rich was to increase income inequality with little benefit to unemployment or economic growth. Among Republicans, four in 10 agreed that it was a failed theory, while three in 10 disagreed. Among Democrats, seven in 10 agreed that trickle-down economics never worked, while two in 10 disagreed.
0コメント