Raising marginal rates

If the federal government is going to attempt to cut the budget deficit and debt, revenue will need to be raised. In an essay (posted on huffpo 2/15/11) written by former Secretary of Labor (Clinton Administration) Robert Reich proposed what appears to be a pragmatic approach in raising tax rates:

-Marginal tax rate to 70 percent on those making over 15 million


-Marginal tax rate to 60 percent for those making between 5 and 15 million

-Marginal tax rate to 50 percent for those making between 500k and 5 million

These rates would help raise revenue and that revenue would come from those who can afford to pay their share. The ones whose rates will be raised are the ones who benefit the most from the work of the federal govt to provide infrastructure and policing of property rights etc. They have the most to benefit from a healthy economy. Similar rates to the ones proposed by Reich did not seem to slow investments in the 1950's. There are many factors that lead to slowed economy, but there has to be something to the fact that the economy has been in bad shape since the Bush Administration cut the rates for those making the most. If cuts in services such as Medicare are being considered, then these changes in tax rates need to be considered as well.