WASHINGTON — The Congressional Research Service has withdrawn an economic report
that found no correlation between top tax rates and economic growth, a central tenet of conservative economy theory, after Senate Republicans raised concerns about the paper’s findings and wording. Enlarge This Image
Alex Wong/Getty Images
Mitch McConnell, the Senate Republican leader, center, and other Republicans raised concerns with an economic report that questions a central tenet of conservative economic theory.
The decision, made in late September against the advice of the agency’s economic team leadership, drew almost no notice at the time. Senator Charles E. Schumer, Democrat of New York, cited the study a week and a half after it was withdrawn in a speech on tax policy at the National Press Club.
But it could actually draw new attention to the report, which questions the premise that lowering the top marginal tax rate stimulates economic growth and job creation.
“This has hues of a banana republic,” Mr. Schumer said. “They didn’t like a report, and instead of rebutting it, they had them take it down.”