Quote Originally Posted by Timothy Clontz View Post
Unfortunately Obama was also wrong. His action to raise rates above 35% will bring in less revenue, AND damage the economy in the process.
Tim, your curve doesn't show that to me. It shows a range of 35-39% (or so, just eyeballin') is the "optimal" range. Picking the exact peak is subject to interpretation, due to a number of reasons, but simply uncertainty in the collected data, as well as uncertainty in methods used to collect the data, over the period 1940-2011.

Whether Obama is right or wrong is largely moot. Certainly, collecting higher revenues is one necessary path. I'm not going to engage in all the things right/wrong about the various proposals but with Obama coming in at the higher end of your range, and knowing that many of the tax cuts have been made permanent, I don't see that ANYBODY in charge, Repub/Dem/Indy, would have much choice except to go to the right on your flattop in terms of trying to get us out of this mess.

Good analysis overall. Thanks for taking the time to post this.