The Fallacy Behind Higher Tax Rates
Posted by Benjamin Dona on Wednesday, May 21st, 2008 at 5:44pm.
I ran across an excellent article today by David Ranson in the Wall Street Journal. It has to do with a review of economic data about the federal tax system written by Kurt Hauser. Published 15 years ago, Mr. Hauser stated "No matter what the tax rates have been in postwar America, tax revenues have remained at about 19.5% of GDP." Ranson has dubbed it "Hauser's Law" and laments in his article "What a pity it is that his discovery has not been more widely disseminated."
With all the political drivel about how the wealthy have to pay their fair share or how those who have been more successful owe a duty to those who have been less so, the wealth redistribution crowd's demands for higher tax rates just doesn't hold water when you look at the reality of the numbers. Such a review should be mandatory and the facts should be repeated over and over again until the masses in this country wake up and see this "lets raise taxes" idea for what it truly is - a charade to pick your pockets. I learned at a very young age that numbers usually don't lie. Politicians and elitists do, on a regular and never ending basis. You can read Mr. Hauser's article here.
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