Changes in top 1% income share and top marginal tax rate
This scatter graph sample shows the changes in top 1% income share and top marginal tax rate in 1975-2008.
"Supply-side economics is a school of macroeconomics that argues that economic growth can be most effectively created by lowering barriers for people to produce (supply) goods and services as well as invest in capital. According to supply-side economics, consumers will then benefit from a greater supply of goods and services at lower prices; furthermore, the investment and expansion of businesses will increase the demand for employees. Typical policy recommendations of supply-side economists are lower marginal tax rates and less regulation. ...
Supply-side economics proposes that tax decreases lead to economic growth. Historical data, however, shows no correlation between lower top marginal tax rates and GDP growth rate."
The scatterplot example "Changes in top 1% income share and top marginal tax rate" was created using the ConceptDraw PRO diagramming and vector drawing software extended with the Scatter Diagrams solution from the Graphs and Charts area of ConceptDraw Solution Park.