MONEYWATCH
What tax changes mean for investors
April 19, 2012
April 19, 2012
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income tax changes have not had much measurable effect on earnings growth.
"In fact, the growth rate of earnings from the peak of one business cycle to the next has consistently been about 7 percent over the six major earnings cycles spanning the past 50 years," writes Kleintop. That's despite average top marginal income tax rates ranging from 91 percent at the beginning of the period to the current 35 percent, as well as corporate tax rates ranging from 52.8 percent to 34 percent over the last five decades.
As for the bond market, historically changes in income tax rates
income tax changes have not had much measurable effect on earnings growth.
"In fact, the growth rate of earnings from the peak of one business cycle to the next has consistently been about 7 percent over the six major earnings cycles spanning the past 50 years," writes Kleintop. That's despite average top marginal income tax rates ranging from 91 percent at the beginning of the period to the current 35 percent, as well as corporate tax rates ranging from 52.8 percent to 34 percent over the last five decades.
As for the bond market, historically changes in income tax rates
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