Capital gains taxes have a liberal bias!

Capital Gains.

Everyone knows that lowering the capital gains tax is what causes job growth, economic prosperity, freedom, and happiness. After all, it just makes sense: the obvious way to make poor people less poor is to tax rich people less. Liberals want to increase capital gains taxes because they hate success, want to destroy the economy, and like to make angels cry.

How do we know that lowering capital gains taxes help to improve the economy?  Because the leaders of the Free World, Mitt Romney and Paul Ryan, have told us so.  As it was eloquently explained by Reuters, “Romney and Ryan say that lowering tax rates and reducing or eliminating taxes on capital gains and dividends, while letting huge fortunes pass untaxed to heirs, will boost economic growth and mean prosperity for all.”

Romney told CBS News’ “60 Minutes” that his own 14 percent effective income tax rate in 2011 was fair because lower capital gains taxes are “the right way to encourage economic growth.” When Paul Ryan was asked to defend Mitt Romney‘s proposal that capital gains tax be lowered, he said this: “you want to have more capital that goes to more businesses, especially small businesses like this one, so more people can go back to work. That creates economic growth.”

It all makes complete sense, and they keep telling us that it’s true. There is no reason to doubt them.

Except along comes this stupid graph, above, showing that there seems to be absolutely no statistical relationship between capital gains tax and economic growth!

Liberal heathen and communist Len Burman has graphed capital gains rates and economic growth and found no relationship at all, even when looking for lagged influences of up to 5 years!



Obviously, if statistical correlation is contradicting the claims of wholesome upstanding citizens like Mitt Romney and Paul Ryan, then statistical correlation must be suffering from a liberal bias!!!


Graph Data Source: Len Burman Senate Testimony
Graph Found Via: The Washington Post