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发帖数: 29846 | 1 Tax Cuts Boost Jobs, Just Not When Targeted at Rich
By Pedro Nicolaci da Costa
Tax cuts are an effective way to bolster a weak economy and create jobs—as
long as they are targeted at the bottom 90% of income earners.
That’s according to a working paper published by the National Bureau of
Economic Research that adds new evidence to the age-old debate about the
effectiveness of various types of economic policies aimed at spurring growth
and fostering employment.
“The positive relationship between tax cuts and employment growth is
largely driven by tax cuts for lower-income groups and the effect of tax
cuts for the top 10% on employment growth is small,” writes Owen Zidar, a
professor at the University of Chicago’s Booth School of Business.
In particular, the paper tracks the impact of various tax changes over time,
and finds that tax cuts aimed at the wealthy–which some economists argue
can boost employment because the rich tend to own businesses and are in a
better position to hire large numbers of workers–don’t spur growth in
output and jobs.
Instead, the wealthy show a greater propensity to save, thereby minimizing
the short-run impact on the economy’s performance.
“I find that the stimulative effects of income tax cuts are largely driven
by tax cuts for the bottom 90% and that the empirical link between
employment growth and tax changes for upper-income earners is weak to
negligible over a business cycle frequency,” Mr. Zidar writes.
The effects are stronger in states with higher unemployment rates, the
research finds. |
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