More Fun With Tax Policy

Ok, listen up, you masses that worship the job creators.  You know how you think that raising the tax rate on the richest people will doom our economy to another recession?  Would you be surprised if I told you that this is complete toro caca?

Well it is.

How do I know this?  Economic history.  Tax rates on top earners have varied anywhere from 25% to 93%.  There is absolutely zero correlation between low tax rates for top earners and good economic performance.  Zero.  Guess when income and capital gains taxes for the top earners were at their lowest?  Just before the Great Depression!  Guess when they were at their highest?  Between 1940 and 1965, some of the best economic times our country has ever had.

I don’t mean to imply that higher taxes on top earners leads to economic growth in the prior paragraph.  What I mean to imply is that the tax rate on those who make well in excess of what they are required to live has absolutely no bearing on how the economy performs.  We could raise taxes on top earners back to 90% and the economy could either thrive or shrink and it would have nothing to do with the fact that the taxes were raised.

We are still fighting at least one war and will be fighting many shadow wars for years to come.  The social safety net could use some mending.  The country’s infrastructure needs huge improvements.  All these things are known to be true to just about every American.  So why are we even arguing about raising the top rate a few measly percentage points?  That’s a rhetorical question, I know the answer.

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