Uncategorized

Experts: Allow upper-income taxes to return to Clinton-era rates

Tax wonk Chuck Marr of the Center on Budget and Policy Priorities had an excellent post yesterday afternoon about the wisdom of letting income tax rates on the wealthy return to their Clinton-era levels. In it, he notes that even Wall Street favorite Robert Rubin is endorsing the idea.

“Rubin was a key architect of President Clinton’s 1993 economic plan.  With budget deficits high and projected to hit record levels, Clinton adopted a balanced approach of spending cuts and tax increases, including a rise in the top tax rate from 33 percent to 39.6 percent.

Just like today, critics warned that raising the top rate would wreck the economy and the promised deficit reduction would not occur.  The opposite happened:  economic growth averaged nearly 4 percent annually over the Clinton years, helping turn large deficits into large surpluses (see graph).”

Here is the rather remarkable graph to which Marr is referring:

 

 

 

 

One Comment


  1. david esmay

    November 14, 2012 at 9:49 am

    Even the Bush reject Romney retread Glen Hubbard is calling for an end to the tax holiday as one means to address our fiscal problems. Reality is slapping the GOPers hard.

Check Also

Op-eds: Father’s Day week reminds us of the need for paid leave laws

In case you missed them, a pair of ...

Top Stories from NCPW

  • News
  • Commentary

With midterm elections around the corner, lawmakers have, unsurprisingly, taken aim at last minute c [...]

On May 25, the news headlines read that Democratic state Senate candidate Jen Mangrum had been disqu [...]

If it seemed impossible that neighbors of industrialized hog farms had any legal rights left to lose [...]

Can you put a price tag on victims' rights? A fiscal note obtained by NC Policy Watch that has [...]

The post SB 711 – The pig’s roast appeared first on NC Policy Watch. [...]

In another effort to pander to the minority of Americans who want to make abortion and birth control [...]

The practice of loading down noncontroversial legislation with divisive and partisan provisions is a [...]

It usually happens a few times every legislative session: at some point during their annual stay in [...]