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Thursday, July 14, 2011

Barack Delano Hoover

It is somewhat odd that our president wants to emulate one of the biggest bone-headed moves of all time. Looking at the history of tax rates in this country Herbert Hoover presided over a big bone-headed move in the early 1930s designed to balance the budget. He raised the top marginal rate from 25% to 63%. The economy quickly went into a further tailspin and the downward phase of the Great Depression was soon sealed. Roosevelt could not stand it either so he went class warrior in his second term and raised the top marginal rate to 79%. Now our president wants to do the same thing. I am sure he would not mind the class warrior comparison to Roosevelt. He may object to the Hoover mirror image. But that is just what he is doing.

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