Times Economist: Fair Share For the Rich is a 91% Tax Rate

November 19, 2012 at 2:00 pm (91%, Corporate Tax, Economy, Fair Share, Jobs, New York Times, Paul Krugman, Rich, Tax the Rich, Taxes)

How can liberalism’s favorite economist know so little about the topic he is known for?  New York Times economist, Paul Krugman had this to say in today’s op-ed regarding the Twinkie situation…

Consider the question of tax rates on the wealthy. The modern American right, and much of the alleged center, is obsessed with the notion that low tax rates at the top are essential to growth. Remember that Erskine Bowles and Alan Simpson, charged with producing a plan to curb deficits, nonetheless somehow ended up listing “lower tax rates” as a “guiding principle.”

Yet in the 1950s incomes in the top bracket faced a marginal tax rate of 91, that’s right, 91 percent, while taxes on corporate profits were twice as large, relative to national income, as in recent years. The best estimates suggest that circa 1960 the top 0.01 percent of Americans paid an effective federal tax rate of more than 70 percent, twice what they pay today...

… Along the way, however, we’ve forgotten something important — namely, that economic justice and economic growth aren’t incompatible. America in the 1950s made the rich pay their fair share; it gave workers the power to bargain for decent wages and benefits; yet contrary to right-wing propaganda then and now, it prospered. And we can do that again.

Yes, because business will certainly prosper with an added burden of a 91% tax rate on the wealthy, and a corporate rate double what it is today.  It will surely create a scenario where wealthy business owners and small business owners alike will announce thousand upon thousands of job openings.

It’s no wonder Krugman is heralded as an economic hero in liberal circles.  Reality however, offers a different vantage point.

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Democrats Willing to Play Chicken With the American Economy

July 16, 2012 at 4:12 pm (Bush Tax Cuts, Democrats, Economy, Fiscal Cliff, Jobs, Obamacare, Obamatax, Patty Murray, Recession, Republicans, Small Business, Tax the Rich)

Democrats have laid down the gauntlet, claiming they are willing to drive the American economy off the “fiscal cliff” if Republicans don’t agree to their demands to raise taxes on individuals and businesses making over $250,000 annually.

The Washington Post reports:

Democrats are making increasingly explicit threats about their willingness to let nearly $600 billion worth of tax hikes and spending cuts take effect in January unless Republicans drop their opposition to higher taxes for the nation’s wealthiest households.

Emboldened by signs that GOP resistance to new taxes may be weakening, senior Democrats say they are prepared to weather a fiscal event that could plunge the nation back into recession if the new year arrives without an acceptable compromise.

In a speech Monday, Sen. Patty Murray (Wash.), the Senate’s No. 4 Democrat and the leader of the caucus’s campaign arm, plans to make the clearest case yet for going over what some have called the “fiscal cliff.”

In other words, they are threatening to allow the economy to plunge into another recession if they can’t demand small businesses and job creators pay for their reckless entitlement spending during the Obama years.

Four straight years with a trillion dollar deficit, with Obama and the Democrats adding nearly $6 trillion to the national debt in the last three years, and now they are threatening to drive you over a cliff if they can’t collect more in taxes.

This from the PJ Tatler:

This is big, and it is outrageous: The fundamental difference between the two major parties is exposed for all to see. The Democrats want to punish job creators with higher taxes and are willing to hold middle class tax rates hostage to get what they want. The Democrats are lurching hard left on a pretty fundamental thing in an election year: the state of the economy. This is Jim Jones, drink-the-Koolaid stuff the Democrats are doing. They are threatening to hurt millions of Americans if the GOP doesn’t agree to raise taxes, taxes which may help bring the weak economy down if they are enacted. But if the GOP agrees to raise them it disappoints and dispirits its own base, and will share the blame for the consequences.

 Bear in mind, this threat comes on the heels of one of the biggest tax hikes in American history – the Obamacare Tax.

With businesses having to deal with the cost of the Obama Tax, and now having to worry about the Bush Tax cuts expiring, a double dip recession seems likely, while unemployment will most certainly remain stagnant or grow even higher.

Obama of course, was the man who said, “you don’t raise taxes on anyone during a recession”.

Now they’re going to demand taxes be raised and intentionally attempt to wreck the economy?

Politics.  Politics first, at the expense of sound fiscal policy.

Are you ready for the plunge?

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