Sunday, February 23, 2014

It's the Revenue to the Federal Government, Stupid - Addendum 2

From 1921 to 1925, the top federal income tax rate was dropped on four separate occasions (from 77% to 58% to 50% to 46% to 25%) and, guess what, people. According to a 1982 study by the Federal Reserve Bank of Atlanta, the total amount of taxes paid by folks making over $100,000 a year actually skyrocketed by 86% (from 1921 to 1926) and their share of the total income tax burden also went up precipitously; 81% (from 28.1% of the total income tax burden to 50.9% of it)....Which leads me to ask of these progressives yet again, what is it that we're really trying to accomplish here? Fund the government, or act like a bunch of collectivist shits and socially engineer our way to yet another economic downturn?

9 comments:

dmarks said...

Too much of it is based on a combination of base emotions and some of the "seven deadly sins", which all combine to support a mentality of wanting to steal from those who are good at what they do and are good at creating wealth, and viewing all such individuals as evil, who must be destroyed.

Kept in check, you end up with economic meltdowns, and industries and investors fleeing the country. But if it gets out of control, you get situations like Stalin.

Will "take no prisoners" Hart said...

We didn't even have a damned income tax prior to 1913. And, while, yes, we did have some panics and economic downturns back then (most often caused by central banking), they were generally quickly resolved and without as much as ounce of intervention from the government. Compare that to the Great Depression (with the meddling of Hoover and FDR) and to the current situation and the case for government intervention is pitiful at best.

Rational Nation USA said...

The more you tax something the less of it you get. Generally.

Jerry Critter said...

If our top marginal tax rate was 77%, I would be in favor of lowering it too.

Rational Nation USA said...

I believe we're getting closer to common ground? ;-)

dmarks said...

That's a good thing....

Will "take no prisoners" Hart said...

I think that there's a real thirst for tax reform on both sides. I would personally have 3 rates (15,20,and 25%) with zero deductions and no special consideration for capital gains (call it my version of the Buffet Rule). Yes, it would be a nightmare for tax preparers but a strong jolt to the economy, I think.

dmarks said...

Will: I'd have a 0% rate as well. Those in poverty should be burdened minimally by the tax system.... if at all.

Will "take no prisoners" Hart said...

I agree and a part of my proposal would still include the EITC (or the negative income tax, if you prefer - per Milton Friedman/Charles Murray).