Why the Bush Tax Cuts Worked | Jeffrey A. Miron | Cato Institute: Commentary

Why the Bush Tax Cuts Worked | Jeffrey A. Miron | Cato Institute: Commentary: "Capital is mobile: when it is taxed heavily here, it flees somewhere else, meaning lower investment and employment in the United States. And because capital income taxes discourage investment or drive it overseas, they generate little if any tax revenue."

"their real objection is that the Bush tax cuts (allegedly) favor the wealthy. This claim is true in part; lower tax rates on the high income earners are obviously beneficial for those earners. Yet this is only part of the story. To stimulate work, saving, and investment, tax cuts have no choice but to favor the taxpayers who respond most to taxes, as well as those likely to save and invest. That means high income earners. So policy must accept some inequality in exchange for more efficiency."