Economics/Class Relations

Fifty Years of Tax Cuts for Rich Didn’t Trickle Down, Study Says

I do not oppose tax cuts for the rich per se. Taxes are still the means of funding the state even if they are collected from the rich, a fact that many left-wing anarchists seem to lose sight of. But the state also creates the wider plutocratic economic structures from which the “rich” emerge, a fact that many right-libertarians lose sight of.

By Craig Stirling, Bloomberg

Tax cuts for rich people breed inequality without providing much of a boon to anyone else, according to a study of the advanced world that could add to the case for the wealthy to bear more of the cost of the coronavirus pandemic.

The paper, by David Hope of the London School of Economics and Julian Limberg of King’s College London, found that such measures over the last 50 years only really benefited the individuals who were directly affected, and did little to promote jobs or growth.

“Policy makers shouldn’t worry that raising taxes on the rich to fund the financial costs of the pandemic will harm their economies,” Hope said in an interview.

That will be comforting news to U.K. Chancellor of the Exchequer Rishi Sunak, whose hopes of repairing the country’s virus-battered public finances may rest on his ability to increase taxes, possibly on capital gains — a levy that might disproportionately impact higher-earning individuals.

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