Move personal tax rate
back up to prior levels
Re: “Measures creating wealth are better than redistribution” (Letter to the editor, Eastbaytimes.com, Nov. 19):
Christopher Andrus’ rebuttal is that tax incentives and income distribution are two different things. They can be, but he leaves out an important point.
Capitalism has created great wealth but not without tax incentives. Corporate tax rates used to be low, although higher than they are now; however, personal income tax rates topped out at over 70%. This gave top corporate earners an incentive to plow their income back into the company (instead of pulling it out as is often done today), thereby making the company more productive and generating more wealth for the company and its workers.
So, let’s keep the corporate tax rates lower and move the personal tax rate back up to where it used to be. Otherwise “measures to encourage wealth creation” and “income redistribution upward” are two terms that mean exactly the same thing.
Source: Mercury news
Letter: Move personal tax rate back up to prior levels