Supply-side economics is one of the biggest scams ever foisted onto the American people. It's based on the idea that if the very rich receive tax cuts, they will use this money for creating new jobs, not on buying their second yacht.
Michael Ettlinger is Vice President for Economic Policy at the Center for American Progress. Michael Linden is Director of Tax and Budget Policy at the Center.
"Did the supply side policies of Presidents Ronald Reagan and George W. Bush work? Did they boost investment, spur growth, and cause prosperity to trickle down? The data says no. And when President Clinton raised taxes in 1993, did the economy suffer a slowdown, as was predicted by those who believe in supply-side economics? Again, the data says no.
This data does not mean that higher taxes are always better and lower taxes are always worse for the economy. That would be making the same mistake that many supply-siders make, but in reverse. Indeed, there were obviously other forces at work in our economy besides tax policies over this 30-year period. But it does mean that lower taxes aren’t always the answer, aren’t a magical economic cure, and that higher taxes can coexist with, and perhaps even aid, a strong economy."