You're going to give me a HuffPo article to prove your point, Wytch? Really?
The 50's and the 90's have very little to do with the current economy that we're in. As I said earlier, it's a Keynesian economic principle to only raise taxes in a strong economy. We had strong economies in the 50's and the 90's. We don't now. So go ahead and raise the top tax rate to 90% if you like but don't expect the same result when the circumstances we're in are TOTALLY different. There is a REASON why Christina Romer (who is about as liberal an economist as there is) cautions against raising taxes on anyone right now. She's a Keynesian and she understands full well that it would be terrible fiscal policy. The call to raise taxes by Obama isn't about fiscal policy...it's about reelection strategy.
It's a Reuters article, not Huffpo. They do that...use Reuters and AP.
Please show me where Christina Romer came out against a tax increase on those making over $1 million.
The Rock and the Hard Place on the Deficit
by Cristina D Romer
The economic evidence doesnt support the anti-tax view. Both tax increases and spending cuts will tend to slow the recovery in the near term, but spending cuts will likely slow it more. Over the longer term, sensible tax increases will probably do less damage to economic growth and productivity than cuts in government investment.
Tax increases and spending cuts hurt the economy in the short run by reducing demand. Increase taxes, and Americans would have less money to spend. Reduce spending, and less government money would be pumped into the economy.
Professional forecasters estimate that a tax increase equivalent to 1 percent of the nations economic output usually reduces gross domestic product by about 1 percent after 18 months. A spending cut of that size, by contrast, reduces G.D.P. by about 1.5 percent substantially more.[...]
But if federal policy makers do decide to reduce the deficit immediately, reducing spending alone would probably be the most damaging to the recovery. Raising taxes for the wealthy would be least likely to reduce overall demand and raise unemployment.
Damn, you just burst a delusion. How dare you!
You amuse me, Deanie. Romer comes out and specifically states that raising taxes or drastically cutting spending in a bad economy will further slow the economy. She's then asked which she thinks is worse of the two. She says cutting spending...and you take THAT as Romer being in favor of tax increases? As a Keynesian economist I expect her to say that increased spending is what she wants...and she doesn't disappoint.