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Discussion: (16 comments)

  1. I think Krugman just wants the fiscal stimulus that tax rates at 91% will give. Like back in the 1950’s, at such rates, the private sector will assuredly PAY less in taxes.

  2. It should also be noted that individual income tax revenue as a percentage of GDP was actually lower in the 1950s and early 1960s than after marginal tax rates were cut.

    http://si.wsj.net/public/resources/images/ED-AN743D_Reyno_G_20110615184205.jpg

    Unfortunately, Krugman has a habit of ignoring reality.

  3. Oh lordy, can we PLEASE stop pretending that Krugman is still a serious economist and just call him what he is? A lickspittle for the modern Left who prostitutes who his dust-gathering credentials for credibility?

  4. David Ross

    Krugman is such a clown, I can’t believe he gets space in the NYT to pontificate on things he obviously knows nothing about. Please don’t pay any attention to him, he’s like the drunk uncle at your daughter’s wedding….

  5. There are only two possible explanations for Paul Krugman’s pronouncements on economic policy over the past fifteen years or so:
    (1) He suffers from senile dementia.
    (2) The Nobel-Prize winning economist of the 1970s and early 80s has been kidnapped by hostile space aliens and replaced by a simulacrum pre-programmed to make statements calculated to destroy the Earth’s economy and make it easier to be conquered.

    1. ArmchairEconomics

      Actually. . . I remember Krugman once penning a ‘serious’ article about how we needed an ‘alien invasion’ to ‘stimulate the economy’.

      I am not lying. He seriously did. Paul Krugman actually made the case in the NY Times for space aliens invading earth as an economic argument.

  6. Even when he attempts to smile in the above picture, this fraud portrays the EVIL that occupies the little space behind his evil eyes.
    It is a human puzzle how these folks control America…

  7. Steven Hales

    Cue commenter Max Planck…”the usual drivel from plutocrat wannabe Pethokoukis, whining again about taxing the actual rent seeking witling plutocracy as if that would crash the economy. Idiot.”

  8. Paul Greenberg

    Krugman conveniently forgets that rates in the 1950’s (and 1990’s) were much higher for everyone. The marginal rates for the middle class were about 50% in the 1950’s. I can’t imagine even Krugman is crazy enough to advocate for that?

  9. 5. Nobody except the extremely stupid paid 91%. Deductions and credits brought people down into lower brackets

  10. You missed one other big reason why the 91% top rate didn’t devastate the economy. Contrary to Krugman’s laughably ignorant claims about how well executives lived in the 1950s, they lived quite well because of non-salary benefits and expense account abuse.

    I’m guessing Krugman has forgotten all about things like the Three-Martini Lunch because such once-common extravagances are no longer extensible thanks to the closing of expense loopholes in the 1960s and 1970s. It wasn’t just lunches. Executives were compensated with company-owned cars, mansions, yachts, and vacation homes, given servants, and had deferred compensation deals, all to avoid that high marginal tax rate. The higher the tax rate, the more beneficial it is to evade taxes, which is why most of Europe has a much higher tax evasion rate than the US.

    If you want some evidence of how bad the expense account abuse problem was during what Krugman thinks was a golden age of egalitarianism, see the beginning of this Yale Law Journal article from 1958:

    http://www.jstor.org/discover/10.2307/794007

    I also note that, somehow despite that 91% top marginal rate, the Kennedys managed to remain quite wealthy, as did plenty of others.

  11. I always wonder why NOBODY’S solution is sound currency and no taxes? Why hasn’t it worked yet? They literally take a shot at everyone who tries to implement it. Notably, two wars against Britain we ‘won’ after we signed a bank charter with the Crown, and they got on their boats, with guns, and sailed away… Enjoy your debate, folks…

  12. jeff owens

    Sorry, but any article with a quoted source being a former Bain Capital executive should be greeted with the utmost skepticism.

  13. Allen Montgomery

    Sorry, Jeff Owens, OLY and others, these arguments against the person are not economic arguments. They do nothing to further knowledge.

    1. Allen,
      For what’s worth:
      It is simpler than you think; start from the word economy. It was created by the ancient Hellenes and simply means financial “order” in one’s house. Superimpose that into the State’s financial order and you should have your answer.
      NOTHING IS FREE IN LIFE, and if we elect profligate politicians that believe that our children should PAY for our bad decisions then there will NEVER be financial order in our country.
      Now, CUTTING EVERYTHING DOWN TO THE BONE is the only financial solution; or, we are all looking at what used to be the former United States of America.
      “Crookman” is a true “One World Order” FRAUD.

  14. Mavor Wilbert

    Where has Krugman called for a 91% marginal tax rate?

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