Math and Facts are Harder


I’m sure Paul Krugman thinks he made a morally justifiable argument in his recent NYT article supporting ¡Ocasio! She Guevara’s proposed higher tax rates, but he’s dead wrong on both the facts and his math. He wrote,

The controversy of the moment involves AOC’s advocacy of a tax rate of 70-80 percent on very high incomes, which is obviously crazy, right? I mean, who thinks that makes sense? … And it’s a policy nobody has ever implemented, aside from … the United States, for 35 years after World War II — including the most successful period of economic growth in our history.

It’s a fact that World War II ended in 1945. You can look it up.

It’s also a fact that the top U. S. personal income tax rates were cut from 70 percent to 50 percent in 1964. Paul Krugman could have looked that up in the NYT’s archives.

1964 – 1945 = 19 and 19 < 35.

Also, the peak period of post WWII economic growth in America was after that tax cut, a fact that Krugman would have also found if he researched his paper's own archives.

Space prohibits a full discussion of the impact of the tax cut, but current data show that inflation-adjusted G.D.P. increased 5.8 percent in 1964 after a 4.4 percent rise in 1963. Growth improved to 6.5 percent in 1965 and 6.6 percent in 1966. These were the three best back-to-back years for economic growth in the postwar era, and economists generally credit the Kennedy-Johnson tax cut for much of it.

Sometimes Truth just refuses to fit The Narrative.

UPDATE—To be fair to Paul Krugman, the Kennedy/Johnson tax cut became law just before his 11th birthday, so he probably has no real memory of the economic conditions he was writing about.

Don’t Know Much About History Meets Math Is Hard


Jeff Dunetz has a post over at The Lid about ¡Ocasio! She Guevara’s “tax fairness” proposal. He quotes her as saying.

You know, you look at our tax rates back in the ’60s, and when you have a progressive tax rate system, your tax rate let’s say from zero to $75,000 may be 10 percent or 15 percent, etc. But once you get to the tippy-tops on your 10 millionth dollar, sometimes you see tax rates as high as 60 or 70 percent …

Uh, wrong! The 70 precent top rate on incomes above $100,000 was a holdover from the ’40 and ’50s. One of the key accomplishments of the Kennedy Administration in the ’60 was to get the top rate lowered to 50 percent as a means of stimulating economic growth. Even corrected for inflation, her imagined threshold income for the top rate is an order of magnitude higher than the ’50s value. She’s set her definition of rich too high.

In any event, her numbers don’t add up with the current distribution of incomes. Jeff includes the following table—The top marginal rate is now about 40 percent. If doubling the rate didn’t result in the rich moving more of their their assets offshore and the taxman could take twice as much money from them, one could expect about a 20 percent increase in revenue. Personal income taxes would increase 40, but personal income taxes are only about half of the government’s take. That would provide roughly 800 billion dollars a year, which would not quite offset the deficit expected before implementing She Guevara’s Green New Deal. In fact, doubling everyone’s taxes wouldn’t provide enough money to fund her schemes.

TANSTAAFL!

UPDATE—With her congressional pay, Ms. Occasional-Cortex will be entering the upper 5 percent of income earners. Perhaps this will provide her with the same sort of practical education experienced by other who have climbed the income ladder.

Team Kimberlin Post of the Day


I sometimes wonder if Brett Kimberlin knows how to tell a story without having at least one lie in it. Take a look at the TKPOTD for two years ago.

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I’ve mentioned that VelvetRevolution.US is running another promotion centered on a reward for information concerning voting machine hacking again this year. One new twist is asking for donations to fund the reward.vrusrewardbleg

Hmmmmm.

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The Dread Deadbeat Prevaricator Kimberlin has changed VelvetReveolution.US’s corporate name to Protect Our Elections/EMPR Inc., but the entity was and still is a 501(c)4 organization as far as the IRS is concerned. While a 501(c)4 entity does not have to pay federal income taxes, donations to such an entity are not tax exempt. (Well, they may be if they’re legitimate business expenses, but good luck convincing the taxman that donations to TDPK’s “reward” fund qualify. Nothing in this post should be taken as tax advice.)

Lying liars gotta lie.

UPDATE—This is currently on the DONATE page of the Protect Our Elections website.The IRS Exempt Organizations Business Master File Extract shows that Protect Our Elections-EMPR Inc. is a 501(c)4 entity and that donations to it are not tax deductible.

Tax Cuts in the Left’s Alternate Universe


Sarah Hoyt has taken many of the Democrats’ prediction concerning the effects of the recent tax cut legislation and created  Diaries from Taxmaggedon.

I have ventured to compile an imaginary diary from a world in which the left’s ideas are reality.  I also have ventured to make it five days, because frankly, they are extrapolating the end of the world, and even I – with my experience of fiction writing – can’t make that happen in two days.

Read the whole thing.

UPDATE—Oh, look! A down twinkle! Given when it came in and what the connection log shows, I’ll bet it came from someone who won’t have to pay any federal income tax under the new law.