Rangel on Taxes

Charlie Rangel is proposing lowering the corporate tax rate from 35% to 28%—a move that comes close to McCain’s proposal to lower it to 25%, but not so close to Reagan’s better proposal to lower it to 0%—while raising the top individual tax rate to 44%, applying on income over $200,000. One out of two….

Why do Democrats think, for example, that two-income professional couples are rich?

During the 1920s, a time of great prosperity, the top tax rate fell from 77% to 24%. The top rate, moreover, didn’t kick in until one reached very high incomes, ranging, depending on the year, from $100,000 to $1,000,000. That’s roughly $1.1 million to $11 million in 2008 dollars. I think raising tax rates is a bad idea at any income level. But if one is committed to raising the top rate, why have it begin at a level that is far from rich, and which, in the 1920s, would have been taxed at rates ranging from 16% down to 8%?

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