Sunday, November 4, 2012

Conservatism Economic Core Belief Exposed

From the Huffington Post: a GOP scandal and an expose of the Conservative crime cartel's core belief, now nothing but a corpse of an "economic policy," rolled into one in a story, "Congressional Research Service Report On Tax Cuts For Wealthy Suppressed by GOP."

"The New York Times reported on Thursday that Senate Republicans applied pressure to the nonpartisan Congressional Research Service (CRS) in September, successfully persuading it to withdraw a report finding that lowering marginal tax rates for the wealthiest Americans had no effect on economic growth or job creation.

"'The pressure applied to the research service comes amid a broader Republican effort to raise questions about research and statistics that were once trusted as nonpartisan and apolitical,' the Times reported.

"Republicans told the Times they had issues with the tone, wording and scope of the report, but they clearly objected most strongly to its findings, which undermine the governing fiscal philosophy of the party, that tax cuts for the wealthy will spur growth and benefit everybody.

"GOP officials told The Times that the decision by the CRS came after a cooperative discussion, but Democrats have suggested that the move is part of a broader effort by Republicans to squelch legitimate research that runs counter to their economic principles.

"The CRS report, by researcher Thomas Hungerford, concluded:

"The results of the analysis suggest that changes over the past 65 years in the top marginal tax rate and the top capital gains tax rate do not appear correlated with economic growth. The reduction in the top tax rates appears to be uncorrelated with saving, investment, and productivity growth. The top tax rates appear to have little or no relation to the size of the economic pie. 
"However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution. As measured by IRS data, the share of income accruing to the top 0.1% of U.S. families increased from 4.2% in 1945 to 12.3% by 2007 before falling to 9.2% due to the 2007-2009 recession. At the same time, the average tax rate paid by the top 0.1% fell from over 50% in 1945 to about 25% in 2009. Tax policy could have a relation to how the economic pie is sliced—lower top tax rates may be associated with greater income disparities."
"The report is extensive, but the reasoning behind its conclusion is fairly straightforward. The richest Americans are the least likely to spend extra money they get as a result of a tax cut, and are more likely to save it or invest it offshore. Those on the lower end of the economic spectrum, meanwhile, are the most likely to spend transfer payments they receive from the government.

"A release by the Democratic Policy & Communications Center on Wednesday accused Republicans of attempting to bury the report because its 'findings undermine a central tenet of Republican party orthodoxy on taxes.'"

"UPDATE: 5:45 p.m. -- Thomas Hungerford, the CRS researcher who produced the report, told HuffPost that he stands by it. 'Basically, the decision to take it down, I think The New York Times article basically got it, that it was pressure from the Senate minority to take it down,' Hungerford said. 'CRS reports go through many layers of review before they're issued and as far as the tone and the conclusions go, people who specifically look at the writing and the tone said it was okay. So it's not going to be that and as I can tell you outright, I stand by the report and the analysis in the report.'

"Hungerford said that he had never experienced suppression like this before, and he pushed back on the GOP argument that he had only looked at the effect of tax cuts in the year immediately following enactment. Regardless, he said, Republicans argue that tax breaks for the rich will bring an immediate benefit to the economy, so their criticism is inconsistent. 'I checked out three years and then five years and found that no, it doesn't change the results or the conclusion of my paper. So in a way, I find it interesting that they keep talking about the need to lower the top tax rate in order to stimulate the economy now,' he said. 'It sounds like they're being a little inconsistent here.'"

A "little inconsistent here?"  The Republicans must have been in a panic mode when it was again proven beyond doubt that tax breaks for the rich, the Conservative economic mantra and the crux of their overwheening drive to plunge us into a new American age of feudalism, not only have " effect on economic growth or job creation," they don't "spur growth" nor "benefit everybody," but they are "uncorrelated with saving, investment, and productivity growth...The top tax rates appear to have little or no relation to the size of the economic pie." AND "...the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution.lower top tax rates may be associated with greater income disparities."

Any further attempt by the Conservative lackeys in the Republican Party to cut rates for the rich or even attempt to thwart the necessary tax increases for the wealthiest in our society to benefit all Americans should be looked at as a criminal act - an action deemed nothing more than another criminal action by the largest criminal organization in recorded history.


"If you can't beat them, arrange to have them beaten."

George Carlin