THE U.S. GDP & THE SUPPLY-SIDERS

The voodoo economists think that only the highest marginal tax rate determines economic grwoth and Jonathan Chait points out that there was tremendous growth in the economy from 1947 to 1973 depite the top rate being either 91% or 70% for that period. If we look at GDP per capita over that period in constant year 2000 dollars, it almost doubled, going from $10, 976 to $20, 541.

The Great Raygun tax cuts (1981-1988) produced an increase from $23,061 to $27,578, an increase of 19.59%. In contrast, Clinton (1993-2000) raised taxes and we saw an increase from $28,981 to $34,785, an increase of 20.03%.