View Single Post
Old 11-14-2012, 11:08 AM   #9
patteeu patteeu is offline
The 23rd Pillar
 
patteeu's Avatar
 

Join Date: Sep 2002
Casino cash: $5000
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.
__________________


"I'll see you guys in New York." ISIS Caliph Abu Bakr al-Baghdadi to US military personnel upon his release from US custody at Camp Bucca in Iraq during Obama's first year in office.
Posts: 75,744
patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.patteeu is obviously part of the inner Circle.
  Reply With Quote