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Old 03-17-2009, 08:36 PM
catawba catawba is offline
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Quote:
Originally Posted by pjohns View Post
I cannot dispute your numbers; nor can I verify them.

I can verify them: (AP) "Two-thirds of U.S. corporations paid no federal income taxes between 1998 and 2005, according to a new (GAO) report from Congress."

http://www.cbsnews.com/stories/2008/...n4342535.shtml

As a right-wing populist, I can assure you that I have no love for large corporations, or for those who profit hugely from them. But neither do I care for the idea of a system that approaches the European model; which is to say, democratic socialism. (In fact, of the two, I would much prefer the former.)

I have never described the Clinton-era top marginal rate of 39.6 percent as "socialistic"; so that is a red herring.

Certainly, the top rate of earlier times--which ranged between 91 and 92 percent between the years 1951-1963, and was as high as 94 percent near the end of WWII--was clearly confiscatory: http://www.truthandpolitics.org/top-rates.php


The tax rate for highest income bracket between 1940 - 1980 averaged 80%.


Higher marginal rates do not automatically produce a greater revenue stream to the government. There is--somewhere--a point of diminishing returns, beyond which higher rates simply depress economic activity, and actually reduce government receipts.

Funny, I didn't see that in Clinton's time or during the period of 1940 - 1980!

I confess that I am not smart enough to know precisely the point at which this optimum point occurs.

I venture to say its not at the Clinton rate of 39% since we survived quite well for 40 years averaging 80%.

Nonetheless, one should be very wary about beginning with the bold assumption that an increase in rates will necessarily yield more in tax receipts.
Of course not, nor is that the plan, that is why we are also investing in education, health, sustainable energy and jobs, and after our economy recovers, a cut to much of our wasteful spending like our bloated military!

Last edited by catawba; 03-17-2009 at 08:37 PM.
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