New Study Finds High-Income Tax Cuts Don't Stimulate Economic Growth | ThinkProgress

Owen M. Zidar published a recent study on the effectiveness of tax cuts:

Almost all of the stimulative effect of tax cuts results from tax cuts for the bottom 90%. A one percent of GDP tax cut for the bottom 90% results in 2.7 percentage points of GDP growth over a two-year period. The corresponding estimate for the top 10% is 0.13 percentage points and is insignificant statistically.

These results of this study are consistent with another study by Mark Zandi.

Mark Zandi, economist for Moody's Analytics, indicated similar results. Programs like unemployment compensation and for stamps (SNAP) had a multiplier effect, a term used in Keynesian economics, that most tax cuts lack.

Some conservatives were quick to dismiss the Zidar and Zandi's studies, but Zandi worked as economist for John McCain in the 2008 campaign.

New Study Finds High-Income Tax Cuts Don't Stimulate Economic Growth | ThinkProgress:

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