If we are going to switch to a consumption tax (which is what Krugman claims the Ryan plan is) then the top rate needs to be closer to 40%. But the chart he uses to illustrate this point is meaningless, as it divides taxes by current income, rather than consumption. As a result Krugman makes it look like the rich would only pay 12% under the Ryan plan. Krugman’s not the only one to do this, but it really annoys me when I read this sort of nonsense. I don’t have time now, but this summer I plan a long post on why the income tax is widely misunderstood by progressives.
Originally from the pit at Tradesports(TM) (RIP 2008) ... on trading, risk, economics, politics, policy, sports, culture, entertainment, and whatever else might increase awareness, interest and liquidity of prediction markets
Friday, March 12, 2010
It is a moral abomination, and grossly inefficient as well
Scott Sumner on income taxes:
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