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%.
The Republicans essentially screwed up when they read to much into Reagan's success in the 80's and failing to see the the differences between then and now.
With the Deficit going to hit about 2 Trillion this year or close to it and Obama will get us moving up pretty quickly. For instance Bush increased the debt by 5 Trillion Dollars over 8 years, Obama will reach that in 3 or 4 years. Keep in mind also that if the Economy doesn't meet the rosy growth projections in Obama's budget it will happen a lot a quicker.
Yes, and the argument is that the top tax rate is still too low - in point of fact unchanged from the right-wing years!
Yes but taking it up to even 45% would barely make a dent in the deficit. We shouldn't forget that Clinton raised taxes on everyone, not just the rich. Plus Obama is increasing spending much faster then Clinton was. For instance even Obama's model's which include the top two tax rates going up(39% and 36%) still have a 700 Billion dollar deficit four years from now. Remember that he is also factoring in high growth rates over the next few years. The consensus is that the growth rates will be half as much. Even if the Growth rates are that high Obama will ad 3 to 4 Trillion dollars in Debt over the next four years. And we will still be running a higher deficit then under any previous President, even if his numbers are true.
