Chart of the day

Via Alan Reynolds



In other words, regardless of rates, the actual revenues generated by the income tax has only varied between 7.7-8.3 percent of GDP with the exception of the late 90s and early 2000s which saw the peak of the internet boom/bubble. When this is combined with Hauser's Law, the inescapable conclusion is that talk of increased tax rates to solve our deficit problem is a distraction from the real solution: deep spending cuts.

That, however, is an uncomfortable reality for those among us married to the idea of big government.