What the IMF calls revenue-maximizing top income tax rates may be a good indication of how much further those rates could rise: As the IMF calculates, the average revenue-maximizing rate for the main Organization of Economic Cooperation and Development countries is around 60%, way above existing levels. For the U.S., it is 56% to 71%—far more than the current 45% paid in federal, state and local taxes by those in the top tax bracket. The IMF singles out the U.S. as the country where raising top rates toward 70% (where they were before the Reagan tax cuts) would yield the most revenue—around 1.25% of GDP. And with a chilling candor, the IMF admits that its revenue-maximizing approach takes no account of the well-being of top earners (or their businesses). online.wsj/news/articles/SB10001424052702304355104579232480552517224?mod=WSJ_hpp_sections_opinion
Posted on: Thu, 05 Dec 2013 03:38:05 +0000