Sander Levin wants answers on shelved CRS tax report
Rep. Sander Levin, the top Democrat on the House Ways and Means Committee, is demanding answers from the Congressional Research Service on why it withdrew a report questioning the connection between income tax cuts and economic growth following Republican complaints.
In a Thursday letter to CRS Director Mary B. Mazanec, Levin said he was “deeply disturbed” that the report “was taken down in response to political pressure from congressional Republicans who had ideological objections to the report’s factual findings and conclusion.”
Continue ReadingThe New York Times reported Thursday that Senate Republicans, including Minority Leader Mitch McConnell, raised objections to the wording and substance of parts of the report. The story also noted that the CRS analyst who authored the report, Thomas Hungerford, had given more than $5,000 to Democrats this election cycle. Some of Hungerford’s donations were noted last month by the Daily Caller.
The CRS report drew notice amid a growing debate over the looming fiscal cliff, and a potential tax reform debate, as many Republicans argue that tax cuts will boost the economy. “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,” the report said. “Analysis of such data suggests the reduction in the top tax rates have had little association with saving, investment or productivity growth.”
His report had drawn criticism from the conservative-leaning Tax Foundation, which noted last week in a blog post that the report had been withdrawn. “The report's methods were so seriously flawed that the study could not possibly pick up any relationship between taxes and growth, making its results, or lack of them, meaningless,” senior fellow Stephen Entin wrote Oct. 23.
The CRS is one of several nonpartisan research and analysis agencies in the federal government. Researchers are supposed to provide nonpartisan legal analysis and policy guidance for members of Congress — much like the Congressional Budget Office provides budget analysis.
The reports are traditionally considered the official guidance for members of Congress and their committees. Republicans have been increasingly skeptical of those reports in recent years — that’s why the decision to withdraw the tax report has some Democrats demanding answers.
Levin said the role of the CRS hinges on the political independence of the agency. “It would be completely inappropriate for CRS to censor one of its analysts simply because participants in the political process found his or her conclusion in conflict with their partisan position,” the Michigan Democrat wrote.
He called on Mazanec to explain who made the choice to take down the report, why the choice was made and what will be done to ensure it never happens again.
Antonia Ferrier, a spokeswoman for Orrin Hatch, ranking Republican on the Senate Finance Committee, sent an email to reporters Thursday afternoon saying that GOP staff had “shared a litany of concerns with CRS over the methodology, the analysis and the conclusions. It was a constructive conversation.”
“After we shared our concerns over the methodology of this report, CRS took it down, on its own volition,” Ferrier wrote. She also referenced Hungerford’s political contributions to Democrats. “If Republicans were interested in pressuring the CRS for political reasons, this surely wouldn’t be the first piece we chose to single out. This piece, however, took such liberties with economic analysis and CRS’s independent reputation, that a constructive discussion was necessary given its deep, irreparable flaws.”
This article first appeared on POLITICO Pro at 4:04 p.m. on November 1, 2012.
Readers' Comments (22)
Go figure....the GOP congressional leaders have pressured the nonpartisan CRS to table their report on tax disparity prior to the election. The report proves that the favorite conservative meme, of low taxes for the rich = trickle down benefits for everyone else is pure nonsense. Actually you don't even need a report to confirm this. You just need to have lived an average middle class life for the last 20 years. Here is the "money" excerpt....would love to see any winger on here attempt to dispute it.
"The results of the analysis suggest that changes over the past 65 years in the top marginal tax rate and the top capital gains tax rate do not appear correlated with economic growth. The reduction in the top tax rates appears to be uncorrelated with saving, investment, and productivity growth. The top tax rates appear to have little or no relation to the of the economic pie.
However, the top tax rate reductions appear to be associated with the increasing concentration of income at the top of the income distribution. As measured by IRS data, the share of income accruing to the top 0.1% of U.S. families increased from 4.2% in 1945 to 12.3% by 2007 before falling to 9.2% due to the 2007-2009 recession. At the same time, the average tax rate paid by the top 0.1% fell from over 50% in 1945 to about 25% in 2009. Tax policy could have a relation to how the economic pie is sliced—lower top tax rates may be associated with greater income disparities.
More juvenile GOP stunts in the US Congress. Mitch McConnell is a heinously disgraceful political hack. His words and deeds are beneath the dignity of the US Senate. He needs to do something about his wattle neck so we don't have to see it.
A report that would likely conclude there is no direct correlation between tax cuts and economic growth, and the republican congress nixes the report in its entirety. Shocker!! Unfortunately for them, this issue has already been studied and the conclusion is the same. And the same can be said for tax increases. There are far more powerful and influential forces that drive the economy. Taxes are a footnote. Nevertheless tax cuts are at the heart of the Republican economic plan, so this study would be quite damning. I bet this isn't the end of this story.
Heres an exercise. Ask a business owner what he or she'd prefer: a 10% increase in demand or a 10% tax cut. Id bet that 99.999% would take increased demand. The reason the rich want a tax cut is the same reason everyone does - more money for them!!!! But instead they claim it will spur economic growth as a cover for just wanting more money. I think there is a nuanced distinction though. I'm not sure it has been studied, but it makes common sense: if you make $1,000,000 and get a tax cut, it likely won't make a significant impact on your finances.. But if you make $30,000 and live paycheck to paycheck, and then get a tax refund, you'll likely go and spend it before it even clears the bank. There is likely a threshold where a tax cut/refund doesn't make much of a difference. As my old millionaire boss said, "these tax rates mean nothing to me. Give me an extra $100k and it'll just sit in an account somewhere. But give the receptionist $2,000 and she'll go buy a car, new furniture, a new appliance or something else she needs. She needs the money, not me, and she'll spend it, unlike me."
Another very big nail in the coffin of the GOP, the party of liars,elites and ideologues whose time has passed.
I suggest you moderate repubs either toss all of these morons out of the party or form another party that is willing to work through the issues and put America first.
It would be nice if you KNEW that Mitch McConnell is IN the SENATE.
Sandy Levin is IN the HOUSE.
His brother Carl is a Senator.
In fact the entire Levin family is in politics in Michigan and feeding at the taxpayer trough.
"Sandy' just married at his Martha's Vineyard summer home.......NOT in Michigan .....But Martha's Vineyard.
Now how does a "Congressman" afford a second home on Martha's Vineyard?
What is "disgracefull is the fact that Obama watched or was informed of the 4 murdered people IN Benghazi .... NON-Media is complicitin a cover-up.
The NON-MEDIA is no longer TRUSTED at ALL.......They are all Paparazzi.....Slling their stories they were educated by leftist professors to do.
The "stunt" is that Sandy Levin of the HOUSE is pullling the "STUNT" to take attention off the election.
Congress is NOT in Session so SANDY Levin is NOT in Washington.
He's campaigning IN Michigan so he can spend his summers in Martha' Vineyard.
Geez....grasping at straws are you....WTF does that have to do with the fact....FACT that the CRS analysis states that there is NO connection between income tax cuts and economic growth...
Try and stay on topic....
Uh skint: I know that Sylvia's mother can defend herself but I must ask. Where does your little snipe come from, exactly? She mentioned McConnell was in the Senate. She made no reference in his comment to either Levin. And for the record, BOTH the Senate and the House of Representatives are part of the two-chamber Congress. You don't appear to be as well informed as youTHINK you are.
I want answers about the Benghazi cover up and Fast & Furious.
I would like answers on those the NDAA, Why we need the TSA going down our Pants, why they are now on railroads and the Freeways. and Why the DHS just bought over 1 billion rounds of ammo.
Lets see.
The HOUSE and the SENATE act SEPERATLY.
Reid is head of the SENATE so why bring up Mitch McConnell?
If someone is going to post ABOUT House happenings they should have knowlege about WHO and what PART of government they are bit.hing about.
Mitch has NOTHING to do with the HOUSE.
People want to know What they knew, WHO knew and HOW long they knew about the 4 murders.
People now have to do their OWN investigating because they CAN'T trust the NON-MEDIA.
Congress is NOT in session and "Sandy" is shooting from the hip to keep the Benghazi murders OFF the news.
That should concern EVERY person in America.
When a Republican is President the Democrats should want the SAME.
The current NON-Media is a LOST cause...Thry SOLD OUT the people.....FOR government.....Obamas administration left those people to DIE for 9 hours.
Benghazigate should concern EVERYONE because a government who HIDES what they do are a DICTATORSHIP unless we have a PRESS and MEDIA who does their JOB.
America is BETTER than that........It's what we have lived with for hundreds of years.
Wow, GOP hiding from the public a study that shows trickle-down economics is a proven failure. Well there are two more studies to point to: H. Hoover and W. Bush. Can't hide some facts or re-write all history. When reality conflicts with right-wing ideology, wingers lie and re-write history.
Why do we need this study. You simply look at a chart of tax rate vs. GDP growth, and you will see that there is no significant correlation. In fact, there is actually a small negative correlation.
Hey fool ! Why do you list yourself as an independent when if fact you are so fast in bending over to the republicans ? Oh ! I forgot , the GOP became the party of liars !!! And as the many faces of Romney this is just another of yours .
Another flat head !
How does an employee of the CRS have enough excess cash to donate $5k to one party?
None of the partisan comments here have, so far, pointed out the complaint has great merit. It would be like the CBO saying the stimulus didn't work and then finding out the author of this study was a max contributor to Romney.
What has happened to our ability to think critically?
I have the ability to think critically and have worked for years as a healthcare analyst. The report is spot on, there is not strong correlation (only a weak one) between tax cuts and economic growth. There never was one, its only the rise of conservative "Think" tanks that have disorted the debate. Republicans repeat the lie enough that most Americans forgot we used to have marginal rates 2-3 times higher than we do today for most of the 20th Century.
Reality is regardless of what marginal tax rates are, we will need over a trillion per year of additional revenue to eliminate the deficit and start to reduce the debt. That is just simple math.
"I want answers about the Benghazi cover up and Fast & Furious."
Sure. The State Department screwed up in Libya. You can expect a senior official (below Hillary Clinton) to be held responsible and be relieved of their duties. No emergency cable ever reached the level of Clinton or the White House. They almost never do. That is the role of mid-level management.
Same could be said for the straw purchase crackdown initiated under the Bush administration. Someone in the ATF/FBI made serious mistakes and we lost accountability. Obama or Holder were not directly involved in the program. Of course the real question is why we don't track legal firearms by the serial numbers intented for that purpose. There would be no need for Fast and Furious then. If a firearm is found at a crime scene, as a responsible gun owner I want to know where it came from and who owns it.
"A report that would likely conclude there is no direct correlation between tax cuts and economic growth, and the republican congress nixes the report in its entirety. Shocker!! Unfortunately for them, this issue has already been studied and the conclusion is the same. And the same can be said for tax increases. There are far more powerful and influential forces that drive the economy."
Thank you for your post. You are spot on.
The study only confirms what most Americans already know from seeing it in action for the last 30 years: trickle down economics doesn't work for the lower 98% of the population.
This isn't rocket science people.I can't believe the democrats have a hard time explaining this.Example;Business Owner has a10% tax rate when he opens his doors only 3 or 4 people straggle in.Business owner B has a 30% tax rate.When he opens his doors 100 people are waiting to come in.Now you tell me who is going to hire more workers??? Everyone knows that demand drives hiring.Tell that to your conservative friends that claim you can't tax the job creators!!!!!!!
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