December 29, 2010
-- by Dave Johnson
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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