Supply-Side Notes 1-5-19

Dan Mitchell at his best:

The Adverse Consequences of a 70-Percent Top Tax Rate on Households

Excerpt:

Second, higher tax rates on the rich will have negative consequences for the rest of us. This is because there is a lot of very rigorous research that tell us:

• Higher tax rates on the rich will reduce capital formation.
• Higher tax rates on the rich will lower economic output.
• Higher tax rates on the rich will shrink the labor supply.
• Higher tax rates on the rich will depress levels of entrepreneurship.
• Higher tax rates on the rich will lead to lower middle-class wages.
• Higher tax rates on the rich will reduce economic mobility.
• Higher tax rates on the rich will drive away superstar inventors.
• Higher tax rates on the rich will lower levels of innovation.
• Higher tax rates on the rich will lead to higher taxes for everyone else.
• Higher tax rates on the rich will encourage tax complexity.

And this is just a partial list.

Read the entire post

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Ms. @AOC wants to do a reverse-experiment on the tax policy of the 1980s, so don't be surprised when we get reverse economic results https://t.co/F3HQBA4X8O

— Dan Mitchell (@danieljmitchell) January 5, 2019