Justice Center report proves GOP is full of crap on tax policy

You know how Republicans always talk about cutting taxes on the rich so they won't leave the state for low-tax jurisdictions? Turns out this GOP talking point is just like every other GOP talking point: Divorced from reality.

In North Carolina, the myth of wealthy people migrating to other states in response to tax hikes has been used to justify slashing tax rates on corporations and the rich. But the facts tell a far different story, say experts. “In 2003, after North Carolina added a high-earners tax bracket, there was actually an increase in wealthy people moving to the state” said Alexandra Forter Sirota, Director of the NC Budget & Tax Center. “This new research confirms what years of experience and previous studies have told us."

Full report here.

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More pesky facts: trickle down baloney

Proponents of the Bush tax cuts argued that lower taxes on top earners would boost the economy. That didn’t happen. The United States experienced real economic growth of 3.2 percent during the 10 years before the Bush tax cuts but only 1.7 percent since. (And this anemic growth was not just a result of the Great Recession; pre-recession growth from 2002 to 2007 averaged only 2.7 percent.) The IRS data also show the effect of the recession on middle-class families: Average income declined 14 percent from 2007 to 2009.