November 5, 2017

WHAT COMES OF FAILING TO ANSWER THE MOST BASIC QUESTION:

Wait, did Bernie Sanders win the election? (Scott Sumner, 11/05/17, EconLog)

 After winning all the branches of government, you'd sort of expect the GOP to propose at least a token reduction in the top rate.

Now the Wall Street Journal reports that the GOP plans to raise the top federal income tax rate to 49.4%:

The House GOP's reform proposal for individual taxes is a mess, but now we learn it also includes a stealthy 45.6% marginal tax rate on some high earners. This dishonest surcharge betrays the GOP's purposes of growing the economy and simplifying the code, and Republicans ought to kill this gift to the left that will be slapped on more Americans when Democrats return to power.
[I added the additional 3.8% income tax to the regular income tax, something our media always forgets to do.]

Now let's consider a wealthy person in California. Under Obama that person faced a top rate of roughly 50%, combining state and federal incomes taxes. Under the new GOP plan, the top rate for Californians would soar to 62.7%, a rate one associates more with Thomas Piketty or Bernie Sanders, rather than the Ronald Reagan GOP. 

Of course Donald is Bernie, but why would we tax income, profits, and returns at all?


Posted by at November 5, 2017 7:27 AM

  

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