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Barack Obama, Supply-Sider (by Don Boudreaux)

Here's a letter that I sent recently to the Washington Post:

Seeking to encourage African governments to embrace institutions that promote economic growth, President Obama said yesterday in Accra that "No business wants to invest in a place where the government skims 20 percent off the top" ("Text of Obama's speech in Ghana," July 11).

He's absolutely correct.  So I trust that he'll offer the same advice to the U.S. Congress, for this body taxes every dollar of corporate income above $50,000 at a rate of 25 percent - and raises this rate to 39 percent on corporate incomes between $100,000 and $335,000.  The average tax rate on corporate incomes higher than $335,000 is greater than 35 percent.

Surely Mr. Obama's understanding of the destructiveness of government confiscation ought not be lost on Rep. Pelosi, Sen. Reid, and Co.

Donald J. Boudreaux


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