Voodoo Economics Will Not Die

Tax Justice Network, via Mark Thoma:

George Bush the Elder (pictured) described the idea as Voo-Doo Economics, but like other too-good-to-be-true patent remedies, the idea that tax cuts for business stimulate investment and growth just won't die.

Over the past 30 years economists have researched and debated the case for tax cuts and generally concluded that the empirical evidence doesn't support the argument. In fact the more we consider the evidence the more risible the case for supply-side tax cuts becomes; read this, for example. Sadly the lack of empirical evidence doesn't deter some fanatics from pushing the case for all its worth, especially since politicians love ideas that go across well in soundbites.

It goes on to say that tax cuts on the wealthy lead to corporations paying executives more, and the government receiving less tax revenue.  It doesn't take a sharp mind to grasp that that is exactly what has happened in the U.S. over the past 30 years.