[quote=SK in CV][quote=AN]
You cautioning me with my use of correlation vs causation? I’m NOT making any claim at all. I was just showing data and pointing out my observation of the data. You’re the one who make insinuations like top rate was 90% in the early 60s and we saw good economic growth. Then a sentence later, saying we should have higher tax rate because it’ll spur corporate spending. I didn’t make the claims that raising lower tax brackets would spur economic growth. I was just saying if we follow your insinuation about high top tax rate = economic growth, we should also look at what were the rest of the tax brackets were back then as well. You can’t pick and choose which variable you want to manipulate and expect us to believe we’ll see the same result.[/quote]
You misunderstood what I said. There is no evidence that higher top rates inhibit economic growth. Nor is there any particularly strong evidence that it stimulates growth either. I’m quite sure I never made that claim.
There is evidence, however, that the higher than current marginal rates on businesses (we’re talking small businesses here, NOT big corporations) are stimulutive, and I’ve outlined the reasons for that. That argument is very specific to businesses, not a claim that higher tax rates are always stimulative.[/quote]
Thanks for clarifying and I agree with these points except for the business taxes. What make you think business won’t just pick up and move to a lower taxed country. Most countries do have lower corporate tax rate than ours. Btw, how small is small. I know a few mom and pop businesses and they would just fire their one employees if their take home is less. I also know one business owner of a company with 150 employees and they haven’t given a raise in 3 years. If their net profit goes down, they’ll either lay off or just not give raise for a few more years until they get their desirable net profit. They can also fire their American employees, except for their sales force, and hire more employees for factory in lower cost countries.
