Victor Weintraub

Romney Is Wrong High Unemployment Comes from Too Low Tax Rates

There is a strong correlation between high unemployment and too low a marginal tax rate. The Romney tax plan for a 25% rate will destroy the economy. The last time that we had a 25% marginal tax was in 1928. We all know what happened in 1929.

 

Scottsdale, AZ -- (ReleaseWire) -- 07/06/2012 -- We cannot continue believing the misinformation that low taxes are good. Low taxes are a destroyer of the economy and of the middle class. We are headed in the same direction as Greece where the wealthy just ignore taxes. The difference is that we have made it legal for the wealthy to not pay their fair share of taxes.

The last time we had a budget surplus was in 2000. That was after Bill Clinton raised the marginal tax rate to 39.6% from 28%. When taxes went up unemployment went down to 4.0%. Unemployment had been 7.7% in 1992.

The marginal tax rate started to decline when Reagan became president. It went from 70% down to a low of 28% in 1988. It is now at 35%. When we average the unemployment rate for the 30 years before 1981 it was 5.2%. For the 30 years after 1981 it was 6.6%. You can do the arithmetic. The unemployment rate went up by 27% and that is including the improvement during the eight years of the Clinton administration. Without that improvement the difference would be higher.

In my book Occupy We The People Decision Time For America I document this and I discuss other problems that face us today. Problems that the candidates do not talk about. This is the most important book published in recent years. I want every American to read it before the elections.

Victor Weintraub is a noted economist, author and entrepreneur. He is the Publisher of First Capitol Books, an independent publisher of E Books and print books distributed world-wide. He is an advocate for progressive political and social programs and has been a lifetime Republican “I am saddened by what has happened to the Republican Party.”