Story Created:
May 20, 2008
Story Updated:
May 20, 2008
Via The Weekly Standard:
The Congressional Budget Office has recently responded to a request from Congressman Paul Ryan (R-WI) for specifics on how much taxes will need to be raised if entitlement spending isn't curbed:
With no economic feedbacks taken into account and under an assumption that raising marginal tax rates was the only mechanism used to balance the budget, tax rates would have to more than double. The tax rate for the lowest tax bracket would have to be increased from 10 percent to 25 percent; the tax rate on incomes in the current 25 percent bracket would have to be increased to 63 percent; and the tax rate of the highest bracket would have to be raised from 35 percent to 88 percent. The top corporate income tax rate would also increase from 35 percent to 88 percent.
Such tax rates would significantly reduce economic activity and would create serious problems with tax avoidance and tax evasion.
Yeah, that should work.
Thursday, May 22 at 6:48 AM From the left wrote ...
Not that conservatives care about the truth, but it was Bush, Jr. who spit away the budget SURPLUS (that's right, surplus) with that great conservative nostrum (tax cut, tax cut, tax cut). Where is Arthur Laffer now and his napkin? By the way, conservatives, did you catch that qualifier in Weekly Standard propoganda? "With no economic feedbacks taken into account . . . ." We were not taxed to death in the 90s and the economy roared after the Clinton tax INCREASE, and oh yes, we had a surplus.
Wednesday, May 21 at 6:02 PM Eddie wrote ...
While I applaud Ryan for the proposal where was this when the Republicans controlled controlled Congress, the Senate and the Presidency? Why not put this out when his party could have passed it and derbated it? Why now? Could it be that the Ryan proposal becomes the new straw man against which the Democrats are measured? Now with his party out of control, this will become the new battering ram to spin the old mantra of "tax and spend liberals." Why didn't Ryan fix this when he had the chance
Wednesday, May 21 at 9:37 AM Dan wrote ...
There are only a few in Washington that think like Paul. The sad part is that this country is on its way to bankruptcy because of the "lobbyists" we elect. I feel for my children & grandchildren, because they will live in the United Socialists of America! It is a repulsive view, but logically predictable.
Tuesday, May 20 at 9:50 PM Crazy Politico wrote ...
Leave it to Paul Ryan to ask the right question. Too bad everyone else in congress will ignore the answer.
Tuesday, May 20 at 8:15 PM steveegg - No Runny Eggs wrote ...
It's even worse than that. The CBO notes that those tax rates are not economically feasable. Even if somehow the "primary" spending were stablilized at 2050 levels (28% of GDP versus 35% of GDP by 2082), it would require a 90% across-the-board increase in taxes, with a 5%-20% decrease in per-person GNP compared to holding the spending and taxing to 2007 levels.
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