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Stephen Moore

Why lower tax rates are good for everyone

If Mr. Obama wants the Warren Buffetts and Justin Biebers to shoulder more of the nation’s tax burden, he would do well to pay attention to the history of tax rates. Over the past century, lower rates have shifted the tax burden onto high-income earners and away from the middle class while maintaining the tax code’s progressivity. …

President Reagan cut all tax rates across the board in his first term, with the highest rate reduced to 50% from 70%. That was followed a few years later with the 1986 Tax Reform Act, which closed loopholes and lowered the top tax rate to 28%.

The economy soared in the 1980s and the unemployment rate plunged after the mini-depression of 1978-82. Tax rates fell but federal revenues rose to $1.032 trillion in 1990 from $517 billion in 1980. …

A cut in spending is the economic equivalent of a cut in taxes now, or later. This point is effectively conceded by Mr. Obama demanding that his spending and borrowing binge of the past four years must be paid for by a giant increase in taxes over the next decade.

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No comrade Moore. You must enter reeducation camp.

darwin on November 16, 2012 at 11:48 AM

Obama doesn’t want the economy to improve

see: Cloward – Piven

trs on November 16, 2012 at 12:03 PM

Nah, they keep doing the same things over and over and expect a different result. Nevermind about that history thingy. They know when THEY do it, it will WORK!!! LOL.

NJ Red on November 16, 2012 at 12:19 PM

Let the top rates go up so we can see the look on the faces of all of the lefties when revenues actually goes down, not up. Let Obozo have his tax increase and let him keep his spending. If tax increases are attached to spending cuts, when the economy hits the wall, the cuts will take the blame, not the tax increases. The conversation is already playing out that way in Europe as a result of their so called austerity measures. Who cares if they have already raised taxes, but haven’t put actual spending cuts into place, the cuts are taking the blame.

The sheep need to learn the pain that is brought on by leftist policies. Once upon a time we didn’t need pain to learn economic reality, because we could look to the disaster that was eastern Europe during the cold war era. Unfortunately, there is a generation of Americans who have no clue what statism is really about, because they never lived through that era of history.

Conservatives won’t win the public debate until the masses are forced to live with consequences of the Obama era. It will hurt, but if we allow Obama to have his tax increases, the pain will only last four years.

HarryBackside on November 16, 2012 at 12:34 PM

Lowering tax rates doesn’t meet the Obama rabble’s need to punish those more successful than they.

Greg Toombs on November 16, 2012 at 12:37 PM

Writing more and more articles like these that state obvious truths to try to convince the ignorant masses is just pounding our heads against a wall over and over. They DONT’ BELIEVE IT, or aren’t paying attention.

They must learn through results and reality. And we have to be on the side of not supporting the reality that will result. L.I.B, and get out in front of teaching the American people what will happen, why it will happen, and what should be done differently. The quicker it burns, the earlier we can rebuild. The longer it takes, the less power we have over the direction of the country, and the bigger the fall will be.

Braveheart on November 16, 2012 at 1:15 PM