An op-ed on today's Washington Post does a good job skewering the "logic" supply-side economics, and specifically, Romney's tax plan. It is something that has been covered extensively, but I feel the dangers of this thinking need to be hammered again and again.
The author breaks it down into "3 fallacies and 2 dangers."
The first is the argument that cutting personal income tax rates would lead to economic growth robust enough to help pay for a big chunk of the cuts. The second, related, fallacy is the contention that raising rates on top earners would hurt growth. The third is that raising capital-gains rates would be even more harmful.
There is scant reliable evidence for any of the above, yet Romney and fellow Republicans hitch their entire economic argument to them. And their rabid pursuit of lower taxes leads to two dangers: further ballooning the national debt and further increasing income inequality.
The rest after the squiggly.
Read More