Monday, July 18, 2011

Michael Boskin: Get Ready for a 70% Marginal Tax Rate - WSJ.com

Michael Boskin: Get Ready for a 70% Marginal Tax Rate - WSJ.com

Democrats just flat-out don't believe the conclusions against higher taxes.

It is rather clear that Laffer's tax argument about the 1930's has been proven by the failure of Bernanke's loose money to overcome the tight money of the 30's.

But, the Democrats believe in a free lunch. They believe that while they go to a grocery store and take along coupons and buy bargains, the productive sector will ignore such behavior and will, in fact, be glad to pay double or triple and somehow still have the same buying power.

We've already seen the impact of the Democrat's free lunch in fewer jobs. The question is whether the voters will want to believe the political party that says candy (i.e. big government) isn't harmful or the political party that says taxes have consequences and there is no free-lunch?

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