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Investment Analysis Clubs / Macro Economic Trends and Risks
|Subject: Re: The Fiscal Cliff-Solving the wrong problem||Date: 11/14/2012 8:40 AM|
|Author: PosFCF||Number: 408439 of 511130|
Well, MC, you have certainly gone and found a number of those who support your viewpoint to quote. But the redneck in me wonders: "If high progressive tax rates hurt entrepreneurship and enterprise, then how did the US economy do so well in the 1950s with a 90% top tax rate? Also, if higher tax rates were such a black hole for creativity and enterprise, how could we have had the bull market from the mid 1980s through 2000?"
I know one can be an academic and quite credentialed and write papers and books and stuff to support just about any viewpoint their sponsors want them to support, but every now and then some good old common sense has to ask some of the tougher questions.
At some point the Laffer curve might come into play but if 90% wasn't enough to do it, then I suspect 39% would be a pretty safe bet.
You see, the beauty about a country like ours is that if someone gets themselves into a huff about a few extra percentage points in taxation and decides to take their marbles and go home, there is always another entrepreneur who will figure out a way to make that money being left on the table and be happy to pay the vig to do so.
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