Ricochet is the best place on the internet to discuss the issues of the day, either through commenting on posts or writing your own for our active and dynamic community in a fully moderated environment. In addition, the Ricochet Audio Network offers over 50 original podcasts with new episodes released every day.
In the Wall Street Journal this morning, Steve Forbes publishes a column that is brief, cheerful (as is his wont), and devastating (also his wont). Secretary of State Hillary Clinton, he notes, remarked not long ago that “Brazil has the highest tax-to-GDP rate in the Western Hemisphere and guess what–it’s growing like crazy.” To which Forbes replies, part:
Take a look at Brazil’s income tax rates–they are lower than ours. The highest rate is a mere 27.5 percent, far below our top federal rate of 35 percent….Moreover that exaction [in the American tax code] will climb to almost 43 percent come January.
Isn’t Brazil’s success an example of what Ronald Reagan and other tax cutters have always claimed: Lower rates generate more economic activity…?