Conservatives Say: It’ Not Fair to Use Facts, Data and Logic to Answer Questions Like This
Now Mr. Barro addresses the problem of the deficit. So naturally his first priority it to cut taxes
So what, specifically, can be done? An effective future tax package would begin by setting US corporate and estate tax rates permanently to zero
But Mr. Barro’s main argument is for reduction of marginal rates, the rates applied to each dollar of additional income.
the fiscal deficit should have concentrated on tax reductions, especially those that emphasised falls in marginal tax rates, which encourage investment and growth
Yes, again with the addressing the deficit by cutting taxes. Does even Mr. Barro know what he is talking about?
Then there is this
The structure of marginal income-tax rates should then be lowered. Marginal rates should particularly not increase where they are already high, such as at upper incomes.
Since Mr. Barro is a professor let’s put the issue in the form of an exam question.
45. If in the first 35 years following World War II economic growth was high, and marginal tax rates were very high, and if in the next 30 years marginal tax rates were lowered and growth was lower, and if during the Clinton years marginal tax rates were increased and growth increased, then is it correct that
A. Lowering marginal tax rates leads to economic growth?
B. I am an idiot for even asking this question?
Choose your answer carefully class.