Obama plans to raise taxes on the rich to finance the federal takeover of the health care industry. Now there's a novel solution. Do you suppose the president thought it up all by himself? Original or not, Alan Reynolds gauges the effectiveness of the idea.
It won't work. It never works.
The maximum tax rate fell to 28% in 1988-90 from 50% in 1986, yet individual income tax receipts rose to 8.3% of GDP in 1989 from 7.9% in 1986. The top tax rate rose to 31% in 1991 and revenue fell to 7.6% of GDP in 1992. The top tax rate was increased to 39.6% in 1993, along with numerous major revenue enhancers such as raising the taxable portion of Social Security to 85% of benefits from 50% for seniors who saved or kept working. Yet individual tax revenues were only 7.8% of GDP in 1993, 8.1% in 1994, and did not get back to the 1989 level until 1995.
Punitive tax rates on high-income individuals do not increase revenue. Successful people are not docile sheep just waiting to be shorn.
Just as health care reform is not intended to improve the health care system, "equality" is not about giving people an equal chance. Both are, above all else, about extending government control.
Given the "astonishing intensity" Obama may be doing those reps a favor by not showing up. Meanwhile, Rasmussen continues to report that overall public opposition to ObamaCare is steady.