In less than 6 minutes, economist Tim Groseclose explains why raising more taxes does NOT mean government will get more revenue.
In fact, there is a point when the opposite happens — when raising more taxes brings in less and less revenue to government.
Astoundingly, it was none other than Christina Romer, former Chair of the Council of Economic Advisers in the Obama regime, who did a study that found that a marginal (or top) tax rate of 33% is the point when increasing taxes becomes counter-productive. That should make us wonder why Obama and the Left keep insisting on raising taxes on “the rich”….
The obvious answer is:
They’re not doing that for the practical reason of increasing government revenue. They’re doing that for ideological class-warfare reasons.
H/t FOTM’s Joan
~Eowyn