Quote of the Day: Swedish Tax Lesson for Congress?
Tax rates are falling all over the globe -- even in Sweden. The exception is the U.S. Congress, which is scrambling to find some way, any way, to raise them.
The proposed 44% top marginal rate would reduce U.S. competitiveness by reducing the after-tax return on investment. Less investment means fewer jobs and lower wages. A Tax Foundation analysis of tax returns finds that roughly three in every five Americans in the highest income tax bracket are small business owners, who create most new jobs.
What's missing from this Congressional tax debate is any recognition that today's tax rates are producing record tax receipts. If the current pace of tax collections continues amid a modicum of spending restraint, the federal budget could be balanced within 18 months. The tax share of GDP is approaching 19%, which is above its modern historical average.
It's a sorry day when American politicians have to be instructed in the virtues of low tax rates by the Swedes.
~From today's WSJ editorial "100% Marginal Tax Rate"