Last weekend new “it” Congressperson Alexandria Ocasio-Cortez got herself interviewed by the 60 Minutes television show, and used the occasion to pitch some of her policy ideas. I wasn’t planning to use the valuable space of this blog to respond to such a thing, but then my daughters started reporting that reaction to the AOC interview had been lighting up their Facebook and Instagram feeds, with numerous comments on the order of “Wow! Finally there’s a politician who really inspires me!” Really?
The particular statement of Ms. AOC that seems to have most “inspired” these young people was her proposal to raise federal marginal income tax rates back up to 70% or so on the highest earners. In her interview, AOC noted that rates at that level had prevailed in this country in the years after World War II:
You look at our tax rates back in the ’60s and when you have a progressive tax rate system. Your tax rate, you know, let’s say, from zero to $75,000 may be ten percent or 15 percent, et cetera. But once you get to, like, the tippy tops— on your 10 millionth dollar— sometimes you see tax rates as high as 60 or 70 percent. That doesn’t mean all $10 million are taxed at an extremely high rate, but it means that as you climb up this ladder you should be contributing more.
But might such high tax rates have some adverse economic consequences? . . .
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