Sunday, November 9, 2008

Tax Hikes During Economc Downturns

There is no economic policy justifed in any economic theory that I am aware of that calls for raising taxes during an economic downturn. Yet, Barrack Obama is making noises that he wants to do so.

They tried it, of course, during the Great Depression.

The top income tax rate was increased from 25% in the early 1930s, to 63% in 1932, and then to 79% in 1936.

1 comment:

  1. They're doing everything else they did during the New Deal, so why not raise taxes too?