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December 29, 2010

A Chart Everyone Should See

-- by Dave Johnson

Top Marginal Income Tax Rates & Real Economic Growth, a Bar Chart | Angry Bear.

This chart shows how well the economy grew at different top tax rates. It shows that higher top tax rates coincided with higher GDP growth until passing a top rate of 92.5%.

Also see The top marginal income tax rate should be about 65%... where he explains why, but how it could go as high as 75% before any drop-opp in growth.

However, growth does not drop much at all as you go higher, so it makes sense when you have a lot of debt to go to the highest, not the optimal, until the debt is paid down. So we really could go to 85-90% for a while.

Posted by Dave Johnson at December 29, 2010 5:53 PM


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