Thread: Economics "Soak the rich" is pure folly
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Old 07-09-2011, 03:39 AM   #28
Silock Silock is offline
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Quote:
Originally Posted by alnorth View Post
I'm not suggesting that we hike the top rate back over 50% like it was before Reagan, but the 1950's and 60's didn't seem that terrible.

Listening to the right fringe, you'd think that if the top tax rate goes up just ~3% back to where it was during Clinton, we'd have a global meltdown and unemployment over 25%. There's obviously other things going on with jobs than just the top marginal rate.
I don't think we're at the optimal tax rate right now, either, but the 50s and 60s weren't THAT great.

Real GDP growth has always been shown to be higher in decades following a decrease in the top marginal tax rate as compared to an increase.

Plus, increasing the top marginal tax rate actually shifts the burden down to the lower and middle classes, and doesn't improve tax receipts to the Federal Gov't, which generally hovers around 7-8% of GDP, regardless of whether the top marginal rate is at 20% or at 90%.
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