Ben Stein strikes again. For those who believed it was a fluke when just before the election Ben Stein went on Fox News and said there was little correlation between taxes and economic activity, it was not.
Ben Stein struck again on Fox News when sitting on a panel he simply tore through Charlie Gasparino with facts.
Ben Stein Says as he is constantly interrupted.
Charlie with all due respect there is no data, no reputable study showing that raising taxes on rich people inhibits growth
Charlie Gasparino injects
Nineteen eighties, Nineteen eighties, cutting capital gains
Ben Stein retorts through continuous interruption
sir from 82 to 88 every year Mr. Reagan raised taxes
Republicans have been trying for a long time to suppress all the reputable studies that show clearly that raising taxes on the wealthy do not adversely affect the economy. In fact because the marginal propensity to consume of the middle class is greater proportionally than the rich, and because marginal tax increases does not inhibit any marginal spending increase by the rich, it can actually improve the economy. How? If that tax increase is returned mostly to the economy and partially for debt relief, there is a large multiplicative effect to the economy. This was borne out under both President Reagan and President Clinton.
Of course Reagans huge budget deficits were very stimulative and as such most of his economy was based on stimulus and not on inherent real increases in permanent investments in America as a whole.
See the video below. It is quite informative of the deceptive practices of the characters on Fox New.