Does Wanting Lower Taxes Mean You're a Jesus Freak? Paul Krugman Thinks So!

Fortunately, the Krugman Truth Squad lays the smack down on Paul Krugman, Economic Science, and the Supply-Side at NRO Financial. It turns out that Krugman is a worshipper at the Temple of Unlimited Government Revenue and relies on sheer faith for the basis of his creed.

But despite the evidence, what economic “doctrine” would Paul Krugman prefer? He wants to see tax hikes — big tax hikes. He recently said, “We should be getting 28% of GDP [gross domestic product] in revenue. We are only collecting 17%.” It doesn’t take much of a scientist to realize that he’s talking about increasing federal taxes of all types by about 65 percent on average. But if Krugman were more of a scientist — if he’d look at the evidence — he’d realize that it can’t be done.

Historically, federal taxes have never even taken as much as 21 percent of GDP — even though federal income tax rates have at one time topped 90 percent (from 1944 to 1953). So what tax rate would Krugman propose in order to collect 28 percent of GDP in revenues when even 90 percent rates won’t get revenues up to even 21 percent of GDP? Krugman Truth Squad member William Anderson reported on the VonMises Blog that Krugman himself once said that 70 percent income-tax rates are “insane.” So if rates even worse than insane won’t do it, what will?