Tag Archives: Christina Romer

At what point does taxing more actually reduces govt revenue?

In less than 6 minutes, economist Tim Groseclose explains why raising more taxes does NOT mean government will get more revenue.

In fact, there is a point when the opposite happens — when raising more taxes brings in less and less revenue to government.

Astoundingly, it was none other than Christina Romer, former Chair of the Council of Economic Advisers in the Obama regime, who did a study that found that a marginal (or top) tax rate of 33% is the point when increasing taxes becomes counter-productive. That should make us wonder why Obama and the Left keep insisting on raising taxes on “the rich”….

The obvious answer is:

They’re not doing that for the practical reason of increasing government revenue. They’re doing that for ideological class-warfare reasons.

The United Kingdom just discovered this truth, again.

In the 2009-2010 tax year in Britain, more than 16,000 people reported annual income of more than 1 million pounds (equal to about $1.6 million today). Then in 2010, Prime Minister Gordon Brown, a member of the Labour Party, introduced a new 50 percent top income tax rate for high-income earners. After that, the number of people reporting income of at least 1 million pounds fell to 6,000.

“It is believed that rich Britons moved abroad or took steps to avoid paying the new levy by reducing their taxable incomes,” The Telegraph reported.

Instead of raising revenue, the tax hike cost the U.K. 7 billion pounds ($11.2 billion) in lost revenue — and that in an economy one-quarter the size of America’s.

H/t FOTM’s Joan

~Eowyn

Obama’s Economic Advisor Thinks America is “Pretty Darn F*cked”

Christina Romer, 52, was appointed by Barry Soetoro to be the chair of the White House Council of Economic Advisers. After she [social]engineered Obama’s and the Democratic Congress’ “job-creating” stimulus package, she quit and returned to being Garff B. Wilson Professor of Economics (an endowed chair) at the University of California, Berkeley.

The stimulus ended up decidedly unstimulating to the US economy. Instead, according to none other than the Congressional Budget Office, the stimulus cost the federal government another $787 billion in deficits.

Last Friday Night, August 5, 2011, Romer decided she’s now a comedienne and used the crashing U.S. economy — that she had a hand in crashing — as her “ha ha” act.

Appearing on HBO’s “Real Time with Bill Maher”, Romer said that the S&P credit downgrade was a sign that the country is “pretty darn fucked.” (at the 0:29 mark)

At which, the audience laughed and laughed, and Romer’s fat face scrunched up in a big smile — ’cause, you know, it’s just so darn funny that America our country is in such economic dire straits! Yuck, Yuck! Hardy har har!

Then Romer says, “Policy would be better if we listened to the experts” such as herself.

When foul-mouthed Maher lashes out at Romer for her dogged defense of the president, saying to her, “Fuck you! He fucked up. He’s not your boyfriend,” Romer defends Skippy: “He made lots of good decisions, and they were based on science, they were based on the evidence, they were based on the best evidence that he had.”

Then Romer declares that the problem with the stimulus is that “it should have been even bigger” and recommends a second even bigger stimulus.

Einstein was right. Truly, insanity is doing the same thing over and over again, and expecting different results.

H/t Daily Caller, via Uncoverage.

~Eowyn