CRS Report R42729: Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945

Advocates of lower tax rates argue that reduced rates would increase economic growth, increase saving and investment, and boost productivity (increase the economic pie). Proponents of higher tax rates argue that higher tax revenues are necessary for debt reduction, that tax rates on the rich are too low (i.e., they violate the Buffett rule), and that higher tax rates on the rich would moderate increasing income inequality (change how the economic pie is distributed). This report attempts to clarify whether or not there is an association between the tax rates of the highest income taxpayers and economic growth. Data is analyzed to illustrate the association between the tax rates of the highest income taxpayers and measures of economic growth. For an overview of the broader issues of these relationships see CRS Report R42111, Tax Rates and Economic Growth, by Jane G. Gravelle and Donald J. Marples.

“Taxes and the Economy: An Economic Analysis of the Top Tax Rates Since 1945,” CRS Report R42729, September 14, 2012 (23-page PDFPDF)

“Tax Rates and Economic Growth,” CRS Report R42111, December 5, 2011 (10-page PDFPDF)






For more than 35 years, TheCapitol.Net and its predecessor, Congressional Quarterly Executive Conferences, have been teaching professionals from government, military, business, and NGOs about the dynamics and operations of the legislative and executive branches and how to work with them.

Our on-site training, publications, and audio courses include congressional operations, legislative and budget process, communication and advocacy, media and public relations, testifying before Congress, research skills, legislative drafting, critical thinking and writing, and more.

TheCapitol.Net is on the GSA Schedule, 874-4, for custom on-site training. GSA Contract GS02F0192X

TheCapitol.Net is a non-partisan small business.

Teaching how Washington and Congress work ™

Select publications from TheCapitol.Net

Posted in: CRS

Comments are closed.