Zak

“A recent study from the University of Chicago’s Booth School of Business (not a place known for its socialist tendencies) uses a clever trick to answer whether tax cuts that benefit the rich have more or less of a growth effect than tax cuts that benefit the rest of the economy. Different states have very different income distributions, and therefore tax cuts for the rich should have very different consequences in different states. Connecticut, for example, has many more rich people than Maine. Using the thirty-one tax reforms since the war, the study shows that tax cuts benefitting the top 10 percent produce no significant growth in employment and income, whereas tax cuts for the bottom 90 percent do.56”
― Abhijit V. Banerjee, Good Economics for Hard Times: Better Answers to Our Biggest Problems