As many historians, economists, and informed citizens were forced to point out in the wake of the freak-out over a proposal by Rep. Alexandria Ocasio-Cortez to raise the current tax rate on the very wealthiest Americans to 70 percent, such a rate is not at all unprecedented and higher rates were the norm for a large portion of last century.
Click Here: cheap INTERNATIONAL jersey
And one of the reasons that much higher rates were once very popular was because they were able to generate lots of revenue that was then put to good use. And, since most people are not extremely rich, there was popular support for such progressive taxation.
What Ocasio-Cortez is actually suggesting, said economist and New York Times columnist Paul Krugman, is “what top public finance economists have been saying for some time” and “not at all outlandish.”
So while the newly-seat New York Democrat embraced the idea that “radical” ideas might be needed to help pay for essential policies like the Green New Deal or Medicare for All, many of her allies pointed out that there’s nothing necessarily radical about much higher tax rates on the rich and powerful.
“The top tax rate was above 90 percent during the 1950s, and while it has slowly descended,” noted the Washington Post‘s Jeff Stein on Saturday, “it remained as high as 50 percent for much of President Ronald Reagan’s tenure in the 1980s.”
After talking with several economic experts from across the political spectrum, Stein’s reporting found that the 70 percent rate—if applied to the top .05 percent of income earners in the U.S. today—could generate an estimated $72 billion a year, or $720 over ten years. From the reporting:
SCROLL TO CONTINUE WITH CONTENT