I think we need to raise the rate into the low 40s, but in a new $1 million+ bracket. $400,000 in places like NYC or SF really ain't much if you have a family. We also need to reevaluate payroll taxes.
Yes, payroll taxes should go all the way up to the highest incomes. But I would prefer a top regular income tax rate in the 70 percent range.
Clinton had the right idea. Balance growth with overall fairness and don't kill people on taxes- the Third Way. He may have went a little too far on deregulation. Too much Keynesianism causes stagflation as witnessed in the 1970s. Too much favortism towards the rich caused the Great Depression and the mess we have now.
I agree. There certainly needs to be some balance between the different economic theories. Relying on just one theory can cause problems, such as the republicans caused by relying too much on tax cuts. Tax cutting was great when the top tax rate was 60% but they have a different economic effect when you cut them from 40 to 35%.
