SOWELL: “The empirical facts are there, but they mean nothing if people don’t look at them, and instead rely on talking points.
The first time this political battle was fought, during the Coolidge administration, the tax-cutters won. The data show that “the rich” supplied less tax revenue to the government when the top income tax rate was 73 percent in 1921 than they supplied after the income tax rate was reduced to 24 percent in 1925.
Because high tax rates can easily be avoided, both then and now, “the rich” were much less affected by high tax rates than was the economy and the people who were looking for jobs. After the Coolidge tax cuts, the increased economic activity led to unemployment rates that ranged from a high of 4.2 percent to a low of 1.8 percent.
But that is only a fact about reality — and, for many, reality has no such appeal as talking points.”
[READ Thomas Sowell’s “Politics vs. Reality“]