Thursday, January 20, 2011

Correlation is Not Causation, But...

Economist Mike Kimel has a very interesting post about what happens to various economic indicators as the top marginal tax rate varies. For example, writes Kimel, "higher top marginal tax rates have been associated with faster, not slower real economic growth. Conversely, lower top marginal tax rates have coincided with less economic growth."

This is not new news, but it is a good reminder that when conservative think-tanks and conservative media predict that higher tax rates are bad for employment and the economy they are at best using data that are unsubstantiated by facts to scare you and, at worst, intentionally deceiving you.

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