« Why Newly-Released Prisoners Make Great Entrepreneurs | Main | Praying for Egypt »

Dec 07, 2012


Feed You can follow this conversation by subscribing to the comment feed for this post.

Travis Greene

I don't know that anyone is actually advocating a return to the 91% rate. 91% is crazy. The point is that 1) even that did not really stop people from trying to get rich and 2) by comparison, a return to Clinton-era rates is not some ludicrous socialist revolution.

I think all sensible people agree that both revenue and spending should be on the negotiating table.

Michael W. Kruse

Paul Krugman has recently referenced the 91% rate as evidence that tax rates don't matter much to growth and I read others saying a 70% rate is doable. As the article points out, the reason the high rates worked was because of the accompanying web of loopholes and deductions.

I agree that the return to Clinton rates is probably not that big a deal. And I agree that revenue and pending need to be on the table. But historically, revenue and spending as a percentage of GDP have been about 18-19%. Revenue is just barely under this while spending is at 25% and 4% points over the historic high of the last several decades.

From a purely political angle, as I say, I think the Republicans have been fools not compromise on the tax rate. If they had, it would not be done and forgotten. Republicans could press their case against spending and later revise the tax rate when they get votes and public support on their side. But as it is, the conversation is about Republicans and their protection of the rich.

Dennis Sanders

They don't call the GOP the Stupid Party for nothing.

I would agree that it makes sense to give into the demands to raise taxes on the rich. Not because I believe it would solve things, but it takes the focus off the GOP and on to the President and the Dems.

The comments to this entry are closed.

Your email address:

Powered by FeedBlitz

Kruse Kronicle on Kindle

Check It Out