Austrians have it right

@sɪᴅɪsɴᴏᴛʜᴇʀᴇ I know we disagree on a lot of stuff but you'd really like this study http://borisnikolaev.com/wp-content/uploads/2014/08/Economic-Freedom-and-Quality-of-Life.pdf basically goes into much greater depth about the data behind the graph you posted earlier, with the same result

Damn that’s huge

I agree with it tho

@Neco2040 Ocasio Cortez raising taxes to 70% would cause a crash

Not to mention it’s never been as high as she says

(90%)

wtf I love Ocasio Cortez now

The highest tax rate ever in the United States has been 45%

for personal income tax , top marginal rate

This was the effective tax rate when it was 91% marginal.

For people earning over $3,400,000 inflation adjusted

Yes she wants to do that also, her 70% tax would be a marginal tax for people earning over 10 million a year

Why would you compare a 45% “effective” rate to a 70% marginal rate

It makes more sense to compare the 70% marginal rate to the highest of 94% marginal

@Leo (BillNyeLand) that’s not the point

70% is the top@marginal rate

It makes no difference if that percent isn’t the actual rate being taxed

For example there was a 90% tax rate in 1955 however the effective tax rate was 45%

@chad 10 million?

Where does it say that

It doesn’t matter how high the tax rate is if the effective tax rate is much lower. With these tax rates , most of the taxation was avoided.

That’s why we have such a lower 45% rate.

Oh it is 10 million, however that would be impossible to collect through tax avoidance. So the burden will shift back on the middle class and below

Sounds like a disaster to me and the green new deal is a disaster in itself

Wait how did u find that, I remember I read an article about it like a month ago but forgot where I read it now I can’t find it 😦

@chad about wut

If you mean the 10 million, the guardian

They compare an effective 45% tax rate to a 70% marginal rate because they have nothing better to criticize. It is dishonest, but the lowest common denominator will never figure that out.

Thanks

Yet you’re still comparing a 70% marginal rate to a 45% effective rate on a 90% marginal rate. If your logic carries over, the effective tax rate should be about half 70%, or 35%

@BaneOfThots No I'm saying even as high as 90%, the effective tax rate was 45%

So shouldn’t 70% be even less of a problem

Nobidy denied that

(70% marginal)

What do you mean a problem

I'm just saying theres never been a tax rate higher than 45%

Not an effective tax rate

But a marginal tax rate, yes

Marginal is irrelevant then