In a previous post I wondered whether this claim was actually true. According to Treasury Secretary John Snow and others, Ryan’s claim is false. This from a Knight Ridder story last week:
Treasury Secretary John Snow conceded Tuesday that the much-touted tax cuts for capital gains and dividend income don't drive today's strong economy.The same story cites a Harvard study which states that “50 percent of a cut in capital-gains taxes would flow back to the Treasury in new revenues.” That figure might be very impressive to many people but it still means that the Treasury would have a net loss as a result of the tax cuts.
Asked by Knight Ridder if the tax reductions paid for themselves, Snow acknowledged that they don't. He also acknowledged that economic growth and stock market gains were strong in the late 1990s, when the capital-gains tax stood at 20 percent and dividend income was taxed at rates as high as 38.6 percent.
While the wealthy can thank Paul Ryan for hundreds of thousands in extra cash, common folk can thank him for higher deficits, increasing interest rates, and worries of inflation.