The Ontario government has long believed that cutting corporate taxes will spur economic growth. A new six-decade study from the U.S. Congressional Research Services says that tax rates “have had little association with saving, investment or productivity growth.” The study did find that reductions of capital gains taxes and top marginal rates have led to greater income inequality. A story in The Atlantic notes that in the 1950s the top marginal rates were about three times what they are today, yet GDP growth was twice as fast in the 1950s as it was in the 2000s.
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