Thursday, July 28, 2011

My Economist Weighs In

Thomas Sowell ok's the Boehner plan:

Many of us never thought that the Republicans would hold tough long enough to get President Obama and the Democrats to agree to a budget deal that does not include raising income tax rates. But they did — and Speaker of the House John Boehner no doubt desires much of the credit for that.

Despite the widespread notion that raising tax rates automatically means collecting more revenue for the government, history says otherwise.

As far back as the 1920s, Secretary of the Treasury Andrew Mellon pointed out that the government received a very similar amount of revenue from high-income earners at low tax rates as it did at tax rates several times as high...

Read the whole thing.

Quick Summary of the bill (new version).