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Krugmoron Wants 91% Tax Rate Like In the Good Ol’ Days!

A Nobel Prize Just Does Not Mean Anything These Days

By: Ausonius (Diary)  |  November 19th, 2012 at 11:47 AM  | 

RESIZE: AAA

Truly, a Nobel Prize has become meaningless, at least in Economics.

Krugmoron has an article called The Twinkie Manifesto where he calls for bringing back confiscatory class-warfare tax rates imposed by the Dems.

http://www.nytimes.com/2012/11/19/opinion/krugman-the-twinkie-manifesto.html?ref=opinion



He uses an article from Fortune magazine to claim that top executives in the good ol’ days were forced to live like real middle-class Americans without yachts and mansions.

Sorry, but the yacht industry in the 1950′s did not sink, and mansions were not empty: they were occupied and they were being built.

What Krugmoron conveniently forgets is that nobody in their right mind paid 91%!

By design, the tax code was full of loopholes and special deductions for the top wage earners, so that they would not even be close to turning over $910,000 per million to the FedGov.

But…it allowed the Dems back then to placate the class-warfare unions with the “fact” of a 91% tax rate, while winking at top donors to the Dems (e.g. the Kennedy’s) who were absolutely NOT paying 91% of their income to the FedGov.

Not much has changed!  However, one thing has changed.

These days, with international competition well above where it was 60 years ago, such an actual confiscatory tax rate would see the U.S. be emptied of companies and their executives within a year.

COMMENTS

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  • chrisinva

    Nobody in their right mind would pay that kind of tax rate. Why would I even think about working if what I am paid is effectively handed over to the government? There would simply be no point.
    He is a complete idiot.

    • Ausonius

      Is Krugmoron volunteering to turn over 91% of his own income? Is not a Nobel Prize in Economics over a million dollars or so?

      So come on, Paul! HAND IT OVER!!! Let’s have him redistribute his wealth first as an example for us all!

      I wanted to pose this on the NY Times Comment section by the article, but I see that it is closed…maybe because of such embarrassing questions!

      • chrisinva

        They close it because the editors realized how idiotic this column sounds.

        • http://itsaboutliberty.com/index.php kralizec

          Cannot have their favorite Neo-Keynesian attacked by the little people, now can we. Plus, someone should call that idiots bluff and ask why 100% isn’t an even better idea!

    • commonsenseobserver

      Oh, there’ve been a few liberals trying to convince me that they’d do it because of, uh, economic patriotism and giving back to society or something.

      Of course, that depends on an economy and society existing.

  • checkmate2012

    Aus, it never ceases to amaze me how those that make the most act like they care the most for the middle-class. Talking heads on TV, most of them making millions, and then try to tell us what to do and think. All those on the Left especially O, that are so concerned for the little guy they’ll tax everyone until they’re broke. Taxes on the rich are taxes on everyone. Krugman needs to find a cave!

    • Ausonius

      Why are e.g. Kerry and the Kennedy’s and the Soros Millionaire/Billionaire Club not handing over 91% of everything?

      With hundreds of millions or even billions in the bank, that last 9% still lets you live pretty well! I would say it is not FAIR for people to have that much money. :)

      Of course, that would mean less money to contribute to class-warfare mongering Dems!

      • checkmate2012

        Exactly! Hand it over :) Wasn’t it O that said at some point someone has enough money?

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