"So the only answer to this is to repeal Obamacare," Rubio said in response to an email from a man in Orlando, Fla. "It's just one more reason why this law is going to be a disaster for our country. And in the months to come, I'm really going to focus on the issue of repealing Obamacare because in addition to the IRS's role there is all sorts of other problems with regards to Obamacare that we need to answer."
First, over the past three decades we’ve seen a soaring share of income going to the very top of the income distribution (right scale) even as tax rates on high incomes have fallen sharply, with the recent Obama increases clawing back only a fraction of the previous cuts:
Second, there is now a lot of hard empirical work on the incentive effects of high top tax rates. None of it shows the kind of huge negative effects that figure so prominently in right-wing rhetoric. In particular, none of it suggests that we are anywhere close to the point where raising taxes on the rich would reduce revenue as opposed to increasing it.Here're the bullet points from the article at Economic Policy Institute:
The top U.S. income tax rate is currently well below best estimates of the optimal rate for revenue maximization.
Recent research implies a revenue-maximizing top effective federal income tax rate of roughly 68.7 percent. This is nearly twice the top 35 percent effective marginal ordinary income tax rate that prevailed at the end of 2012, and 27.5 percentage points higher than the 41.2 percent rate in 2013.2 This would mean a top statutory income tax rate of 66.1 percent, 26.5 percentage points above the prevailing 39.6 percent top statutory rate.
Tax reform that broadens the tax base and minimizes tax avoidance opportunities actuallyincreases the revenue-maximizing top marginal tax rate.
This means that base-broadening tax reform and higher marginal rates should be seen as complements, not substitutes. Analyses of top tax rate changes since World War II show that higher rates have no statistically significant impact on factors driving economic growth—private saving, investment levels, labor participation rates, and labor productivity—nor on overall economic growth rates.
Both short-run demand-side and long-run supply-side growth effects stemming from top tax rate changes are extremely modest. Thus, related “dynamic” revenue “leakages” stemming from reduced economic activity following top rate increases are small as well. Indeed, the net revenue feedback of the 2001–2004 tax cuts was recently estimated at recouping just 1 percent of their scored cost.
Historically, decreases in top marginal tax rates have widened inequality of both pre- and post-tax income. This has been interpreted by some economists as marginal rate reductions providing a higher payoff to rent-seeking (i.e., using influence to “bargain” a higher share of income at the expense of other workers).
Today’s economic context of a depressed U.S. economy, political pressure to prematurely reduce near-term budget deficits, and ever-widening income inequality actually strengthens the case for raising top marginal tax rates. There remains substantial scope for further raising top rates toward the revenue-maximizing levels estimated by the best economic research.I'm all for letting your Freak Fly. You feel a deep driving need to get rich? Go for it. It's mostly a lotta fun to watch, and you should get to hang onto the bulk of it. But let's make sure the things that need to be taken care of are getting taken care of - 'cuz those are the things that everybody's responsible for; the things you get the biggest benefits from; and the things that make it possible for you to continue making your zillions. But mostly, let's make sure the disparity and inequalities are kept to reasonable levels - 'cuz that's what keeps the wait staff from takin' a giant shit in your punch bowl.
hat tip = Addicting Info
15-year-old Saylor Slone Martine died this weekend after an accidental shooting in her home. 5NewsOnline reports that the Leflore County, Oklahoma teen and her 12-year-old sister, Savannah, had been “handling a .380-caliber semi-automatic handgun,” and then “put it down on the counter.” When Martine reached for her cell phone, which had also been placed on the counter, the gun fired. LeFlore County Sheriff Rob Seale told reporters that the girl had “sustained life-threatening injuries” and was flown by helicopter to a hospital in Tulsa, where she died. He added that the girls’ mother was outside when the shooting occurred and that it “looks pretty clear-cut accidental.” Neither sister was holding the gun when it unexpectedly fired. Seale suspects that the gun had a “manufacturing defect.”
The study reveals that 32% of Republican statements have been rated ‘false’ or ‘pants on fire’ by Politifact, an organization that fact checks claims made by politicians and others. In stark contrast, only 11% of statements made by Democrats received the same ratings.
According to CMPA President Dr. Robert Lichter, “While Republicans see a credibility gap in the Obama administration, PolitiFact rates Republicans as the less credible party.”
Guns weren't the only thing people raced to buy after 20 students and six adults were killed at Sandy Hook Elementary School.
Some parents bought school gear that would have been unthinkable just a few years ago: bulletproof backpacks.
Impact Armor Technologies in Cleveland is among a small but growing number of U.S. companies marketing backpack shields and other bulletproof school products.
The movement to steel children against the extremely rare chance they'll encounter a school shooter is controversial. Opponents say bulletproof backpacks feed children's fear and suspicion of their peers, adults and the world at large.So basically, we've got Wayne LaPierre pissin' on our heads, and Impact Armor sellin' us umbrellas. That's pretty fucked up right there.
