Tuesday, May 10, 2011

Tax Receipts and Tax Rates

Will increasing taxes on the rich help deficits?  90% tax rates on the wealthiest or 28% on the wealthiest, and no discernible change in Federal Tax revenues as a proportion of GDP.  This relationship, known as Hauser's Law, is quite robust.  Below, see the relationship (click to enlarge).
Rule of thumb: people who want to raise taxes on the rich don't want to do so to fix deficits;  they have ulterior motives.

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