Krugmoron Wants 91% Tax Rate Like In the Good Ol’ Days!
A Nobel Prize Just Does Not Mean Anything These Days
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.
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.