Republicans Should Not Embrace New 46 Percent Tax Rate

The bubble rate shows a surprising level of Republican comfort with marginal tax rates in the mid-40s. Millionaires are not a sympathetic population these days, and the negative economic consequences of this policy may be minor relative to the need for $50 billion in taxes. The danger is that, over time, this policy can be easily expanded to higher rates, broader incomes, and larger populations. After all, if Republicans will not oppose a 46 percent effective tax rate, who will?