The battle over tax cuts often bogs down in class warfare.
Economic growth comes from work, saving and investment.
We can encourage growth by lowering marginal tax rates on those activities. But Congress doesn't award tax cuts after the fact - even though it calculates the benefits as if it did. In fact, people change their behavior in light of a new tax code, so much so that the entire economy changes shape. As a result, the benefits work out quite differently. Our recent study for the Institute for Policy Innovation found that tax cuts to promote growth would benefit people of all incomes.