Income Tax Cut Data

The data are in and, cutting taxes for the rich is only successful at cutting tax revenue while increasing wealth inequality. The philosophy has been that cutting taxes will put more money into the economy, and growth in the economy will increase tax revenues more than enough to compensate. After decades of data there is no evidence to support the claim. Growth rates across a variety of tax policies show that money policy is more effective; and that decreasing tax rates decreases tax revenues. In Kansas,

The tax cuts did not produce the hoped-for growth, though, and more revenue was lost than originally anticipated. Fiscal year 2014 revenues were $700 million lower than FY 2013 — $330 million less than expected – during a period in which most of the American economy was picking up steam. – Brookings

Income tax reductions have dis-proportionally favored people with the most income, enabling increases in wealth inequality. The tax cuts have been good for high-income individuals, but not for the economy or most of the population.

“State Income Tax Cuts: Still A Bad Idea” – Brookings