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Economy Changes from Tax Hikes Indiscernible

Aug. 11, 2013
tax hikes, economic impact

Economy analysts say they are unsure whether tax hikes passed by Congress in January have helped or hurt the U.S. economy.

At the time that the income tax increases for families making over $450,000 and individuals making over $400,000 were passed, Republican said they would slow down the economic recovery, while Democrats argued they would cut the deficit, The Hill reported Saturday.

Now, Thomas Hungerford, a director of budget and tax policy at the left-leaning Economic Policy Institute, said the tax hikes for the most wealthy Americans have had "no impact" on the economy.

"I think any arguments that raising taxes at the top has probably lost some of its relevance," Hungerford said.

Kevin Hogan, chief U.S. economist at HSBC, agreed, saying, "The effect on business activity and investment, which some people would argue is a negative of raising taxes, there it's hard to discern any changes at all."

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Source: Copyright UPI 2013

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