Back in the 1980s and 1990s, there was a widespread consensus that high tax rates were economically misguided. Many Democrats, for instance, supported the 1986 Tax Reform Act that lowered the top tax rate from 50 percent to 28 percent (albeit offset by increased double taxation and more punitive depreciation rules).
And even in the 1990s, many on the left at least paid lip service to the notion that lower tax rates were better for prosperity than higher tax rates. Perhaps that’s because the overwhelming evidence of lower tax rates on the rich leading to higher revenue was fresh in their minds.
The modern left, however, seems completely fixated on class-warfare tax policy. Some of them want higher tax rates even if the government doesn’t collect more revenue!
I’ve already shared a bunch of data and evidence on the importance of low tax rates.
A review of the academic evidence by the Tax Foundation found overwhelming support for the notion that lower tax rates are good for growth.
An economist from Cornell found lower tax rates boost GDP.
Other economists found lower tax rates boost job creation, savings, and output.
Even economists at the Paris-based OECD have determined that high tax rates undermine economic performance.
Today, at 11:20 AM PT: Get the Market Movements in Advance; Williams Edge Webinar for July 28th, 2014 | John Ransom