This graph is from
Wikipedia (h/t to
BikeMonkey). I think it illustrates nicely where the highest marginal tax income rates need to be to get us "back to good times" like the neocons so desperately want. The period of American growth when we were the world's leading manufacturers, scientists and engineers. We were putting men on the moon and making stealth fighters without personal computers. If we wonder at the decline of the middle class, prosperity and the American dream I think we need only look at this graph.
You'll have to forgive me, but I have no idea what the graph represents on the vertical axis.
ReplyDeleteThe vertical axis is the highest marginal tax rate. It's an interesting plot and one can make the argument that the decline in America's relative economic power is due to its decline in the tax rate for the high bracket earners. However, correlation does not equal causation and single variate analysis of such a complex system drastically oversimplifies the issue.
ReplyDeleteI don't know...the single variate analysis they keep giving us common folk is that taxes are too high, which is why the economy is suffering. I think it's appropriate tit for the tat. :-)
ReplyDeleteWhat I'd really like to hear politicians say is, "We're going to close the loopholes that allow offshoring, give tax incentives to create jobs and keep them here, increase spending until the recession is over, and once things are looking good, we'll reduce spending and taxes." But Congress probably won't get smart in my lifetime.