Posted: December 31, 2012
Raising taxes will reduce prosperity. Reducing taxes will raise prosperity.
We’ve heard this again and again, but taxes are at historically low levels, less than 17 percent of gross product. We should be wallowing in prosperity, but we are not.
Taxes were high in the late 1990s, with the marginal rate at 39.6 percent. There was so much prosperity that we were running budget surpluses. How was that possible with taxes high?
Then a new administration came in and cut taxes. Even greater prosperity should have resulted. It didn’t.
Raising taxes … reducing prosperity … is a mantra with no merit. Why do so many espouse it?
A clear case of the emperor having no clothes.