When you watch interviews with “normal” Americans who should support liberal policies on income tax but do not, the most common retort they give is that rich people spend money and this money makes jobs for normal people. This idea goes by the names “trickle down economics” and “hogwash.”
I wrote before about this canard of an idea, and it bears repeating: there is no evidence that our level of taxes, now or if they are raised, impede growth. In other words, Republicans’ argument against taxes is empirically wrong.
James Kwak at Baseline Scenario carries much more weight than me, and he also made this point recently. The whole post is worth a read, and I’ve posted the very important images below the fold.
Where's the correlation?
The idea fails in other countries too
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