Non-Partisan Congressional Tax Report Debunks Core Conservative Economic Theory-GOP Suppresses Study
via: Forbes



What do you do when the Congressional Research Service, the
completely non-partisan arm of the Library of Congress that has been
advising Congress—and only Congress—on matters of policy and law for
nearly a century,
produces a research study that
finds absolutely no correlation between the top tax rates and economic
growth, thereby destroying a key tenet of conservative economic theory?
If you are a Republican member of the United States Senate, you do
everything in your power to suppress that report—particularly when it
comes less than two months before a national election where your
candidate is selling this very economic theory as the basis for his
candidacy.
Initially released on September 14, 2012, the study—authored by
Thomas Hungerford who is a specialist in public finance at the
C.R.S.—correlated the historical fluctuations of the highest income tax
rates and tax rates on capital gains dating back to World War II with
the economic growth (or lack of the same) that followed.
The conclusion?
Lowering the tax rates on the wealthy and top earners in America do
not appear to have any impact on the nation’s economic growth.
This paragraph from
the report says it all—
“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.”
These three sentences do nothing less than blow apart the central
tenet of modern conservative economic theory, confirming that lowering
tax rates on the wealthy does nothing to grow the economy while doing a
great deal to concentrate more wealth in the pockets of those at the
very top of the income chain.
Not surprisingly, the results of the study caught the attention of a great many conservatives—so much so that, according to
a New York Times piece,
Republican’s in the United States Senate successfully pressured the
Congressional Research Service to withdraw the report shortly after it
was released. The withdrawal came over the objection of the CRS economic
team and the author of the study.
The Times
further reports that, according to Senate Minority Leader Mitch
McConnell’s spokesperson, Senator McConnell—along with additional GOP
senators— “raised concerns about the methodology and other flaws,”
adding that additional people outside of Congress were also criticizing
the study.
The nature of these alleged flaws?
That the report included terms such as “the Bush tax cuts” and references to “tax cuts for the rich.”
Added Antonia Ferrier, spokesperson for the Republican members of the
Senate Finance Committee, “There were a lot of problems with the report
from a real, legitimate economic analysis perspective. We relayed them
to C.R.S. It was a good discussion. We have a good, constructive
relationship with them. Then it was pulled.”
While a spokesperson for the C.R.S. refused to comment on the
discussions between the Senate Republicans and her agency, she did
confirm that the report was no longer in ‘official circulation’.
However, the New York Times reports that a source requesting anonymity
confirmed that the decision to pull the study was done against the
advice of the economics division and that the author, Mr. Hungerford,
stood by the report’s findings.
On Thursday, Senate Democrats
republished the study following
a letter sent to the C.R.S. by the ranking Democratic tax expert in the
House, Rep. Sander Levin (D-MI), which reads, in part—
“I was deeply disturbed to hear that Mr. Hungerford’s report was
taken down in response to political pressure from Congressional
Republicans who had ideological objections to the report’s factual
findings and conclusion. It would be completely inappropriate for CRS to
censor one of its analysts simply because participants in the political
process found his or her conclusion in conflict with their partisan
position. I would like your explanation as to why this report was
removed from the CRS website, who made that decision and what
considerations led to it.”
For almost 100 years, the Congressional Research Service has worked
to assist Congress by providing well-researched and accurate data to be
utilized in the creation of important public policy. It has done so
when Congress was controlled by Democrats and when Congress has been
under the control of Republicans. No matter what party was in charge,
the C.R.S. has always endeavored to keep politics out of their work in
the effort to provide data that would inform and advance our public
policy.
Apparently, solid, well researched data no longer matters—at least not when it comes to the Congressional Republicans.
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