<story><title>The Economic Consequences of Major Tax Cuts for the Rich [pdf]</title><url>http://eprints.lse.ac.uk/107919/1/Hope_economic_consequences_of_major_tax_cuts_published.pdf</url></story><parent_chain><item><author>mhoad</author><text>“We find that major reforms reducing taxes on the rich lead to higher income inequality as measured by the top 1% share of pre-tax national income. The effect remains stable in the medium term. In contrast, such reforms do not have any significant effect on economic growth and unemployment.”</text></item></parent_chain><comment><author>mushufasa</author><text>This has been the consensus within academic econometrics for ~15-20 years, FYI, going back to the Laffer Curve argument. Econometrics != economics; you will still find economics people, especially at think tanks, who will hawk the &amp;#x27;tax cuts solve all problems&amp;#x27; theory (typically associated with think tanks funded by wealth people).</text></comment>
<story><title>The Economic Consequences of Major Tax Cuts for the Rich [pdf]</title><url>http://eprints.lse.ac.uk/107919/1/Hope_economic_consequences_of_major_tax_cuts_published.pdf</url></story><parent_chain><item><author>mhoad</author><text>“We find that major reforms reducing taxes on the rich lead to higher income inequality as measured by the top 1% share of pre-tax national income. The effect remains stable in the medium term. In contrast, such reforms do not have any significant effect on economic growth and unemployment.”</text></item></parent_chain><comment><author>ramesh31</author><text>&amp;gt;We find that major reforms reducing taxes on the rich lead to higher income inequality as measured by the top 1% share of pre-tax national income.&lt;p&gt;This isn&amp;#x27;t surprising; a tautology almost. But it doesn&amp;#x27;t really give us any answers. The real question is: &lt;i&gt;is that a bad thing, and if so how bad is it?&lt;/i&gt;. Wealth inequality has been a constant of the human condition since the first farmers learned to aggregate more grain than others. But what, if any, deleterious effect does this actually have on society? And does the concentration of wealth lead to innovations only possible with such an ability to deploy capital in a highly targeted manner?</text></comment>