Senate Democrats have liberated a report from the Congressional Research Service which Senate Republicans successfully got the nonpartisan research arm of Congress to retract. The report argued that there is no evidence that tax cuts for high-income earners boosts economic growth, which Republicans didn’t want out in the public sphere.
Here’s what Senate Democrats said on why they decided to release the retracted report:
The analysis, conducted by the Congressional Research Service, compared tax policy with GDP patterns over the last 65 years. The report’s findings undermine a central tenet of Republican party orthodoxy on taxes.
The report was first released in September but was removed from public circulation shortly thereafter, apparently after pressure was applied by Senate Republican leaders.
We are re-posting the report here, in its original form, so that it receives the unfiltered exposure it deserves as a nonpartisan analysis.
The study from Thomas Hungerford is available here.
The New York Times reported on the dispute today. After the release of the CRS analysis in September, Senate Republicans, led by Minority Leader Mitch McConnell, complained about not just the findings, but the wording of the report; specifically, they didn’t like the use of the phrases “Bush tax cuts” and “tax cuts for the rich.” McConnell and Republicans also smeared Hungerford as a partisan Democrat, citing his political donations to Democratic campaigns. As Sen. Chuck Schumer, messaging leader of Senate Democrats, says, “This has hues of a banana republic. [Republicans] didn’t like a report, and instead of rebutting it, they had them take it down.”
According to the NYT, the Congressional Research Service’s economic division recommended that the report stand, and Hungerford defended the analysis. But CRS took down the report anyway.
The report analyzed data going back to the 1940s to determine whether lower tax rates at the top increase economic growth by increasing investment and productivity. And it finds that average GDP growth was higher in the 1950s, when the top marginal tax rate routinely exceeded 90%, than in the 2000s, when the top rate stood at 35%. “There is not conclusive evidence, however, to substantiate a clear relationship between the 65-year steady reduction in the top tax rates and economic growth,” Hungerford writes, though he sees a more definitive correlation between reductions in the top tax rates and the rise of massive, concentrated income inequality.
Republicans claim that CRS decided on their own to pull the study after criticisms, which they claim were based on solid economic grounds. But this pressure placed on non-partisan research ties into the war on facts that we’ve seen across the spectrum of data from conservatives. Statistics show a decrease in the unemployment rate, so the Bureau of Labor Statistics must be cooking the books. Nate Silver’s aggregation of polls show President Obama with an edge in the election, so he must be skewing the data. Climate scientists show massive environmental effects from man-made climate change, so they must be lying. And now, the Congressional Research Service is biased.
Jared Bernstein writes:
The study, by economist Tom Hungerford, is of high quality, and is one I’ve cited here at OTE. Its findings are fairly common in the economics literature and the concerns raised by that noted econometrician Mitch McConnell are trumped up and bogus. He and his colleagues don’t like the findings because they strike at the supply-side arguments that they hold so dear [...] Woe betide us as a nation if this stands.
According to Bernstein, the study did account for time lags from policy shifts, a core criticism from Republicans, as well as outside factors that could impact the economy. He described the takedown of the report as unprecedented.
And that’s true. This war on facts, where nobody can agree on a common reality based on rigorously study of data, is debilitating to democracy.
UPDATE: Top Democrat on the Ways and Means Committee Sander Levin wants answers from CRS as to why they pulled the report.




10 Comments

Support this site!
Subscribe to the newsletter
Advertise on Firedoglake
Send
us your tips
Make us your homepage
About FDL News Desk
Only Republicans get do-overs I guess
Some of the graphs are printed in landscape mode, and my astigmatism makes diamond shapes kind of like circles, but this quote will do:
42
Dude,why would anyone be surprised by this
Aren’t Dems in the Senate just as wealthy as their GOP counterparts in the Senate.
The Senate is there to serve the interest of the wealthy(themselves)& not us ,ordinary Americans…
So keep voting for super wealthy people pretending to be progressive & you will end up eating shit every time…They don’t care about you,never did just look what they have done to us the last 20yrs.. more Americans in poverty since the Great Depression….This is a fight between them & us and the sooner most Americans realize this the sooner we can begin to help all ordinary Americans.
Democrats are just as corrupt & crooked as the GOP.
So how many times do I have to post about the Library of Congress–where CRS is–until all of you get it? It’s where I retired from, so I know what I’m talking about. The Librarian is ex-CIA and quite a right-wing nut. Just google “Madison Council” (which Billington started and controls) and see names likes Ken Lay, David Koch and John Thain. Just about all are right-wing scum surrounded by scandal. CRS has been under attack for quite some time. CRS employees were forced to form a union decades ago when a Republican senator got a researcher fired. A CRS attorney, who since then has died, got him his job back. BTW, these senators, etc., sure like having researchers help their kids. Madison Council members also get access to these researchers. The point is the Library of Congress, a fabulous institution founded by Jefferson, was corrupted years ago. I got tired writing detailed reports to Congress about thefts and water damage caused by mismanagement. Just for one example I turned into the DoJ, Billington let a friend take out a rare Russian 16th Century Bible. I had fun tearing apart Billington’s defense, not to mention the book was still not back (which took a few months). I also noted the employee pass card would show who opened the lock. When it came back I noted to the DoJ an employee noted it was a fake. What happened? You need to ask?
Interesting, and revealing, insights, DaveMoore.
Thank you, they are much appreciated, if not especially surprising.
Might you consider, if you have not already done so, doing a more in-depth diary about your experience at the Library of Congress?
I suspect that it would be very well received.
DW
This is insider theatrics.Every smart adult in the G-20 knew that no-target cuts was a trickle-down sham in the Eighties .Targeted is ,you know ,picking favorites .If tax cuts go primarily to wholesale borrowers /investors and savers ,how would this money leave its natural international habitant to expand the domestic economy ? This reasoning is barely above that of a dog .
Our entire society receives pay for performance, so why should the royalist receive tax cuts until they have already invested in America ? Faith-based bribery for business socialist ,who know they are the moocher-elite and make fun of us being dumb-fucking incompetents while they enjoy their two*martini dining on the corporate welfare cheap .
I believe these extractionists will invest in America when austerity yields fire-sale prices on our public and private wealth .They know we are too stupid ,cowardly and powerless to resist this inevitable onslaught when it goes into high gear post-election..
DW: Thanks and thanks for noticing. I wrote a few articles on this subject a year ago in a column on Firedoglake. Due to Eldercare–need I say more–I am unable to do much else since the last posting. If you use the waybackmachine you can access an old website http://www.deepinthestacks.com Everybody at work knew who “the most likely to be assassinated librarian” was; management could do nothing since I was not breaking any laws. My website was noted in the German Parliament and caused a law (and investigation) regarding how LC got the Waldseemuller Map. The Russian media translated the parts on the Russian Mafia at LC. When Khodorkavsky was arrested and jailed, Putin stated he “was sending Billington a message.” In other words, the only people not aware of the Library and the Madison Council are the MSM and American “investigative journalists.” I hope to expose a few more for “Library of Shame,” eldercare permitting.
This reminds me of how the first Bush ordered the Sandia Labs study comparing public and private education as a way of (he hoped) bolstering the big tissue of lies known as “A Nation at Risk” — and how he subsequently suppressed the report when it didn’t do what he thought it would do. (It wasn’t until Clinton took office that the report was officially released.)
It also reminds me of how the Republicans order the Federal government to stop talking about right-wing terrorism when DHS dared to mention that homegrown right-wing terrorists are a far greater and more pervasive threat to America than Muslims and lefties put together.
Ah, thanks! This is wonderful!
Here’s one of yours:
http://web.archive.org/web/20020528201925/http://www.deepinthestacks.com/
Here’s the Wayback Machine’s link to the Waldseemuller Map story: http://web.archive.org/web/20020606045705/http://www.deepinthestacks.com/themap.htm
Interesting story.
FWIW, I, too, object to the term Bush tax cuts, if we are referring to tax cuts beyond 2008. Words do matter.
After January 2009, Obama and the Democratic Congress could have repealed them at any time, a measure that would have been more than justified by the state of the economy. Instead, Obama and the Democratic Congress extended them, in violation of a specific campaign promise Obama had made.
Schumer is mistaken though. In a banana republic, everyone knows and admit they have no choice about their government. Americans still nurse the delusion that they have a say.
BTW, I don’t think using the word “war” loosely is a safe or good thing to do, either.
We had a fake war on poverty, a fake war on drugs and then Bush got Congress to declare a fake war on “terror.”
Next thing we knew, two Presidents claimed authority to do just about anything they wanted anywhere in the world.
Wars are conflicts between nations. Let’s stick to the definition or war humans have used since at least Biblical times.