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Prosperity And Taxation: What Can We Learn From The 1930s


Prosperity And Taxation: What Can We Learn From The 1930s
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The United States conducted an experiment in the 1980s. Reagan dramatically lowered the top tax rate on households, dropping it from 70 percent to 28 percent.
Folks on the left bitterly resisted Reagan’s “supply-side” agenda, arguing that “the rich won’t pay enough” and “the government will be starved of revenue.”
Fortunately, we can look at IRS data to see what happened to tax payments from those making more than $200,000 per year.
To see the chart, click here.
As I’ve previously written, this was the Laffer Curve on steroids. Even when you consider other factors (population growth, inflation, other reforms, etc), there’s little doubt that we got a big “supply-side effect” from Reagan’s tax reforms. ....

United States , Alan Reynolds , E Cary Brown , Uncle Sam , Laffer Curve , Revenue Act , President Hoover , Social Security , ஒன்றுபட்டது மாநிலங்களில் , ஆலன் ரெனால்ட்ஸ் , ஏ கேரி பழுப்பு , மாமா சாம் , லாஃபர் வளைவு , வருவாய் நாடகம் , ப்ரெஸிடெஂட் ஹூவர் , சமூக பாதுகாப்பு ,

The New Deal and Recovery, Part 11: The Roosevelt Recession, Continued


The New Deal and Recovery, Part 11: The Roosevelt Recession, Continued
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Massive jolts of New Deal spending had stopped the economic slide, [but the economy crashed again when] over two years, FDR slashed government spending 17 percent. (From a 2011 NPR presentation.)
In the last installment of this series, I discussed the hypothesis that the 1937 collapse resulted from an ill-conceived tightening of monetary policy to which both the Fed and the Treasury contributed.
While authorities differ in the degree of responsibility they assign to each, there s widespread agreement that, between them, instead of merely extinguishing a boom, as they intended to do, both Fed and Treasury officials helped bring about a crash that undid much of the post-1933 recovery. ....

New York , United States , Bard College , Christina Romer , Kenneth Roose , Lee Ohanian , Joshua Hauseman , Henry Morganthau , Marriner Eccles , Benjamin Anderson , Harold Cole , Robert Wagner , Chris Hanes , E Cary Brown , Jonian Rafti , John Spielmans , Lauchlin Currie , Fansteel Metallurgical Corporation , National Labor Relations Board , York Democratic Club , National Labor Relations Act , Supreme Court , New Deal , Treasury Secretary Henry Morganthau , Democratic Club , Social Security ,