skip to main |
skip to sidebar
Why Ocasio-Cortez's 70% Marginal Tax Rate Wouldn't Generate the Revenue She Thinks
By Daniel J. Mitchell. Excerpt:
"First, this approach isn’t practical, even from a left-wing
perspective. Simply stated, upper-income taxpayers have considerable
control over the timing, level, and composition of their income, and
they can take very simple (and completely legal) steps to protect their money as tax rates increase.
This is one of the reasons why higher tax rates don’t translate into higher tax revenue.
If you don’t believe me, check out the IRS data on
what happened in the 1980s when Reagan dropped the top tax rate from 70
percent to 28 percent. Revenues from those making more than $200,000
quintupled.
Ms. Ocasio-Cortez wants to run that experiment in reverse. That won’t
end well (assuming, of course, that her goal is collecting more
revenue, which may not be the case)."
No comments:
Post a Comment
Note: Only a member of this blog may post a comment.