Our letter to the local "news"paper ...
... in response to the below silliness ...
Time to erase Reaganomics
At the top of his October 31 essay "Time to erase Reaganomics", Laurence Britt asks "[H]ow did our financial crisis occur?" then proceeds to blame "Reaganomics", which serious economists know as "classical economics", a tenet of the "classical liberalism" the Republic was founded upon.
Now, as a member in good standing of this school of thought -- I get all the secret memos! -- nowhere do I recall Smith, Hayek or Mises stressing the extension of no money down, no income check, adjustable rate mortgages to deadbeats nor the government promotion -- sometimes to the point of near extortion, even -- of same.
But, let's pretend Britt is right and revert to the marginal tax rates (married filing jointly) that preceded "Reaganomics".
It goes without saying that the "selfish" wealthy would see their marginal rate soar from its current 35% to a whopping 70%.
Huzzah!
Fie on the "unpatriotic" wealthy!
But lets move down the chain a ways to the "middle class", or "working families" (wealthy families don't work, you see) as they are called.
All numbers are rounded and are in 2008 dollars and all marginal tax rates are for joint returns and reflect adjusted gross income.
In 1980, if you had $0 to $9026 AGI you paid no income tax.
$14603 in 1980 put you in the 14% bracket. Today: 0%.
You do not pay a dollar of income tax today prior to dollar $16050.
Let's mosey our way up to the middle class. $42482 dollars put you in the 24% bracket in 1980. Today: 15%.
$53633, which is right around the median household income, 28%. Today: 15%.
Anybody at this level feel like doubling your tax burden? Or returning to your pre-"Reaganomics" marginal tax rate?
Fear not, though. Your additional "contributions" will be safe in the grubby hands of ACORN and other community organizers, and bureaucrats much smarter than you and me and Joe the Guy with a Real Job.
Now, it should be noted that even the redistribution-happy Obama is proposing only to raise the top marginal rate to 39.6%, hardly a call to return to the salad days of 1980.
Britt closes "[C]learly, it's time for a change in economic philosophy." Britt's proposal to repeal "Reaganomics" makes Obama's plan of the moment (it's easy to lose lose track) look reasonable by comparison!
References: Bureau of Labor Statistics, http://data.bls.gov/cgi-bin/cpicalc.plTax Foundation,U.S. Federal Individual Income Tax Rates History, 1913-2008, http://taxfoundation.org/publications/printer/151.html
Note: We're not holding our breath.
Time to erase Reaganomics
How did our financial crisis occur?
A conservative revolution started with President Reagan in 1980. According to his theory, "free" markets would bring greater prosperity. Prized were the concepts of less government, deregulation, balanced budgets, privatization of services and fiscal responsibility. Adherents to this philosophy were convinced that it would maximize economic growth. Recent events represent the final verdict on this philosophy. But the clues on where we were heading were clear for years.
...
Clearly, it's time for a change in economic philosophy.
-more-
At the top of his October 31 essay "Time to erase Reaganomics", Laurence Britt asks "[H]ow did our financial crisis occur?" then proceeds to blame "Reaganomics", which serious economists know as "classical economics", a tenet of the "classical liberalism" the Republic was founded upon.
Now, as a member in good standing of this school of thought -- I get all the secret memos! -- nowhere do I recall Smith, Hayek or Mises stressing the extension of no money down, no income check, adjustable rate mortgages to deadbeats nor the government promotion -- sometimes to the point of near extortion, even -- of same.
But, let's pretend Britt is right and revert to the marginal tax rates (married filing jointly) that preceded "Reaganomics".
It goes without saying that the "selfish" wealthy would see their marginal rate soar from its current 35% to a whopping 70%.
Huzzah!
Fie on the "unpatriotic" wealthy!
But lets move down the chain a ways to the "middle class", or "working families" (wealthy families don't work, you see) as they are called.
All numbers are rounded and are in 2008 dollars and all marginal tax rates are for joint returns and reflect adjusted gross income.
In 1980, if you had $0 to $9026 AGI you paid no income tax.
$14603 in 1980 put you in the 14% bracket. Today: 0%.
You do not pay a dollar of income tax today prior to dollar $16050.
Let's mosey our way up to the middle class. $42482 dollars put you in the 24% bracket in 1980. Today: 15%.
$53633, which is right around the median household income, 28%. Today: 15%.
Anybody at this level feel like doubling your tax burden? Or returning to your pre-"Reaganomics" marginal tax rate?
Fear not, though. Your additional "contributions" will be safe in the grubby hands of ACORN and other community organizers, and bureaucrats much smarter than you and me and Joe the Guy with a Real Job.
Now, it should be noted that even the redistribution-happy Obama is proposing only to raise the top marginal rate to 39.6%, hardly a call to return to the salad days of 1980.
Britt closes "[C]learly, it's time for a change in economic philosophy." Britt's proposal to repeal "Reaganomics" makes Obama's plan of the moment (it's easy to lose lose track) look reasonable by comparison!
References: Bureau of Labor Statistics, http://data.bls.gov/cgi-bin/cpicalc.plTax Foundation,U.S. Federal Individual Income Tax Rates History, 1913-2008, http://taxfoundation.org/publications/printer/151.html
Note: We're not holding our breath.
posted by Mr. Buzzcut at 9:15 PM
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