tag:blogger.com,1999:blog-7590806168352381335.post6773422854635703877..comments2023-05-22T07:06:20.045-04:00Comments on Funny Economist - Randall Parker's Completely Serious Macroeconomics Blog: Why not raise the top marginal tax rate back to 94%?Randall Parkerhttp://www.blogger.com/profile/10027493610187640456noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7590806168352381335.post-19163235259934419252011-07-16T01:39:57.305-04:002011-07-16T01:39:57.305-04:00Federal revenue could easily exceed 20% of GDP. Yo...Federal revenue could easily exceed 20% of GDP. Your argument assumes govt was trying to exceed 20% of GDP but failed. The graph also treats the social security surplus as revenue when it's really debt. You calculate revenue by subtracting spending from the on-budget deficit. Since the top rate was cut below 50% (1988), the surplus has been between 1% of GDP and 1.5% of gDP. Under the Bush rates, revenue peaked at 17.2% in 2007 when tax payers were cashing out of a 8 trillion housing bubble. Cap gains that year were 900 billion. Assuming you want a cyclical surplus at the peak of the business cycle, you would need spending cut to about 15.5% of GDP to balance the budget under the Bush rates. Revenue ranged from 13.1% of GDP to 17.2% of GDP since 2001.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-7590806168352381335.post-19909986608468730802011-06-21T13:01:50.505-04:002011-06-21T13:01:50.505-04:00Very much doubt 16th amendment would ever be repea...Very much doubt 16th amendment would ever be repealed. Anything that would make the tax code less of a political entity and more economically efficient would be worth it. And you should not doubt that our tax code is a political and not an economic apparatus.Randall Parkerhttps://www.blogger.com/profile/10027493610187640456noreply@blogger.comtag:blogger.com,1999:blog-7590806168352381335.post-80878203302341374382011-06-21T12:03:03.257-04:002011-06-21T12:03:03.257-04:00How about a consumption type tax like Fair Tax?
O...How about a consumption type tax like Fair Tax?<br /><br />Of course, it would be reassuring if the 16th Amendment were repealed before enacting a consumption tax. Wouldn't like a consumption tax alone at first and then a "value added" tax with my fair tax later.Ashtonnoreply@blogger.com