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View Diary: Killing Sacred Liberal Cows, or What Economists Think About the Economy (105 comments)

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  •  Come to think of it... (1+ / 0-)
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    I'm pretty sure a group of economists recently released an empirical analysis showing that a more efficient tax system in the U.S. would have a highest bracket marginal rate at anywhere between 50-70%. In addition, a study from NBER covering a comparison of OECD countries found that income inequality created significant drags on the economy and inefficiencies. Higher tax rates on income creates positive externalities by eliminating these inefficiencies. While that doesn't say much about income incentive effects, it does get at the larger point that there are many empirical studies showing that income tax revenues are more efficient and economically preferable to consumption taxes.

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