(Source: Huffington Post opinion column by Lee A. Saunders, December 3, 2012. Saunders is President of the American Federation of State, County and Municipal Workers, AFL-CIO.)
One of the great lies of our time is that raising taxes on the wealthy hurts job creation and undermines economic growth. There is absolutely no evidence anywhere in the world that this claim is true. In fact, all the evidence points to the exact opposite being true: When the wealthy are taxed fairly, jobs are created and economic growth is encouraged. Back in the 1950s and 1960s, for example, when the economy boomed and the middle-class expanded, the top bracket for high-income earners was 90 percent. Today, the top bracket is at 35 percent, but the top 1 percent are paying an effective tax rate of less than 30 percent.
In 1993, when President Clinton proposed raising taxes on the wealthiest Americans, he was roundly criticized by the corporate-controlled politicians on Capitol Hill and the Wall Street barons who always oppose higher taxes on the rich. They claimed the economy would suffer and jobs would be lost. Yet, when President Clinton won that tax increase, just the opposite happened. The nay-sayers were wrong. Job creation skyrocketed and we ushered in nearly a decade of strong economic growth.
A dozen years ago, however, that growth came to a halt with Pres. George W. Bush’s program of tax cuts for the rich and the deregulation of Wall Street. Instead, we were left with the lowest job creation of any Presidency in modern times. There is a reason for this result: When the wealthy get massive tax cuts, they don’t spend the money. Neither do corporations. In fact, corporations are now sitting on more than $1 trillion in cash.
Full story: Huffington Post