You know something- I think we can raise the top marginal rate back to 39.6%, remove deductions, flatten the base, and move on. That’s fine.
But I wish to God we’d stop comparing our taxes to European nations and saying “See, we pay nothing!”. I do extensive business through Europe and their taxes are absolutely ridiculous. And it’s reflected in the fact that while they have many good companies and innovations, it pales in comparison to what the U.S. does. There simply isn’t enough incentive or private capital available and the governments don’t know how to innovate the way private markets do.
And this is compounded by the fact that European governments have viewed high taxation and a “mandate” for social programs as a crux to spend wildly and out of control, as we now watch the EU desperately try to find a way to keep it’s member nations solvent and prevent a 2nd recession due to European debt overload.
I think we can, and probably should, marginally raise some taxes in the U.S. But in no way do I think for a second that we should start racing towards OECD taxation levels, simply because a graph says so. Raise taxes where it makes sense, tell our government to learn some discipline and spend within our means, and let American innovation do what it’s done for the past 100 years.