Politics

The Atlantic provides a recent history of how tax increases and decreases actually effect the economy. As the article points out, lowering the tax rate does not in fact increase and spur economic growth in this country. The article is accompanied by a handy chart comparing national tax rates in comparison to the economic growth in the United States. 

Both the first George Bush’s tax increase in 1990 and Bill Clinton’s tax increase in 1993 led to a rate of peak economic growth in the United States. In contrast, George W. Bush’s tax cuts were followed by the economic downturn that turned into a recession and what some may term as a recession.