- Jul 10, 2006
People understand that one key dynamic from about age two.The Think Tank Recipe for Income Redistribution (to the top 1%)
I'm not going to name any specific ones, since they were all in on it together. Heritage Foundation, American Enterprise Institute, Center for American Progress, etc, they are all a part of this. I'd call it a conspiracy, but really they do this hundreds if not thousands of times.
They took a concept that sounded good. Like a low top marginal tax rate. Everybody thinks that low taxes is good. So therefore a low top marginal tax rate is good. Then they loaded up all their media arms with that message and they pushed it out onto the masses, with a steady beat, for decades. That is why everyone thinks a low top marginal tax rate is good. No one even debates it, it is just accepted as some sort of axiom. I assure you it is no axiom.
You want a high top marginal tax rate. This forces what would be "excess income" to be rolled back into production, which leads to more jobs and more growth. When you study this for long enough you begin to understand why this tax rate was so high for so many decades. We need to gain back that common sense understanding, because it has been ripped and raped away from us by an incredibly powerful but small group of entrenched wealth with their shiny baubles and gold plated megaphones.
If people could just understand this one key dynamic they can unravel so much of what has gone wrong in the last 30 years.
1. You have something.
2. I want it.
High top marginal rates may help roll "excess income" into production, but they also roll excess capital to lands with lower taxes. If needs be, the owners of that capital will move with it. There is no point in putting more capital into production if the "excess income" produced will be taken by others.