November 3, 2009
Wall Street Journal Blog Features Tax Foundation Report
"Rich Would be Taxed at 95.2% to Close Deficit"
By Robert Frank
Calm down, no one has said the rich should be taxed at 95%.
But, an analysis by the Tax Foundation suggests that to close the deficit by 2010, couples in the top tax bracket (those earning $373,601 or more) would have to be taxed at 95.2%.
To close the deficit by 2012, the top-earners would have to earn 74%.
This is, to be sure, a misleading analysis. No one is suggesting the deficit should be closed by 2012. And even if they did, the gap would be closed in part with government spending cuts.
Still, the chart is worth bearing in mind for one simple reason: The government is going to need to raise revenue as it expands. And it is going to have to get the revenue primarily from one source: wealthy taxpayers.
