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Old 11-14-2012, 11:08 AM   #14
patteeu patteeu is offline
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Quote:
Originally Posted by jiveturkey View Post
I guess that I don't see a significant difference. Either way you're pulling the revenue from the top earners.
The guy who wrote the article explained why he (and Mitt Romney and the Bowles-Simpson commission) believe there is a difference. It's not a comprehensive explanation, but it covers the basic concept.

Quote:
First, raising revenue is about raising average tax rates, not marginal tax rates, as Barack Obama’s campaign suggested. Higher marginal tax rates distort behaviour and reduce activity. There are ways to raise revenue without increasing marginal rates. Tax deductions should be scaled back, especially in the areas of mortgage interest, charitable giving and employer-provided health insurance.
The truth is that reducing deductions can distort behavior (is this guy British?) too, but higher marginal rates are like multipliers that make all distortions bigger.
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