No trickle-down effect

[Bird on a Fire]

A huge study of 50 years of tax cuts for the wealthy suggests 'trickle-down' economics makes inequality worse

Large tax cuts for the rich don't lead to economic growth and employment but instead cause higher income inequality, a new study that examined tax cuts over 50 years suggested.

A recent paper by David Hope of the London School of Economics and Julian Limberg of King's College London found that tax cuts for the rich in 18 countries predominantly benefited the wealthy.

"Our analysis finds strong evidence that cutting taxes on the rich increases income inequality but has no effect on growth or unemployment" in the short and long term, the researchers wrote.

Glad they've got that sorted out. What with all the big global recession coming up, it's good to know that governments won't try to "stimulate" the economy by cutting taxes for the rich. I'm sure they'll all go for evidence-based policy instead, which is to say favouring green investment.

[dyqik]

"No sh.t: No Trickle" should be the headline.