Growth, Jobs and Tax Rates
I just happened to be surfing business news on the Washington Post when I spotted a headline about tax rates and job creation in one graph. That led to two articles: The Myth of the Lower Marginal Tax Rates, and Rich People’s Taxes Have Little to Do with Job Creation, both by Michael Linden of the admittedly progressive Center for American Progress. Linden has several charts that illustrate how overall economic growth and job growth have kept pace with the marginal tax rate. Assuming that the sources are accurate, both of these charts show that in fact more jobs have been created, and more growth has occurred, when the top tax rates have been higher than they are right now.
Another interesting article on their site is Ten Charts that Prove the United States Is a Low-Tax Country. I’m not an economist, and I’m not necessarily advocating higher taxes, I just found it interesting that we seem to do fine economically with higher taxes, and we aren’t really a high tax country, despite the inflamed political rhetoric out there these days.