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Free Minds & Free Markets

Tax Myths: New at Reason

Alexandria Ocasio-Cortez thinks taxing the rich at 70 percent will bring in lots of tax money. It won't.

On 60 Minutes, Rep. Alexandria Ocasio-Cortez (D–N.Y.) recently said "people are going to have to start paying their fair share in taxes."

Anderson Cooper then asked her what a "fair share" would be.

Ocasio-Cortez responded that in the past, "Sometimes you see tax rates as high as 60-70 percent."

Soon, that became the progressive plan.

But economic historian Phil Magness, of the American Institute for Economic Research, says that progressives miss an important fact: The high tax rates that America had in the past actually didn't bring in much revenue.

When rates were at 70 percent, Magness tells John Stossel, "A millionaire on average would pay 41 percent."

That's because rich people find loopholes.

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The views expressed in this video are solely those of John Stossel; his independent production company, Stossel Productions; and the people he interviews. The claims and opinions set forth in the video and accompanying text are not necessarily those of Reason.

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