"There is a huge difference between top marginal rates and actual effective tax rates. Since 1950, federal taxes have consumed 17 to 20 percent of GDP in taxes. Most economists are opposed to very high marginal tax rates though due to the inefficiencies they introduce"
Most economists who say that are responding to incentives.
It's a rare economist who would admit in the same breath that this 'inefficiency' coincided (not coincidentally either) with the highest growth rate in recent American history.
Most economists who say that are responding to incentives.
It's a rare economist who would admit in the same breath that this 'inefficiency' coincided (not coincidentally either) with the highest growth rate in recent American history.