19.5%

In the 1950s, the top individual tax bracket was a whopping 91%.

America's tax revenues were roughly 19.5% of the country's gross domestic product (GDP).

Around 1965, the top individual tax bracket dropped to around 70%.

America's tax revenues were roughly 19.5% of the GDP.

1985--the top bracket was 50%.

America's tax revenues were roughly 19.5% of the GDP.

In the '90s, the top bracket was 40%.

America's tax revenues were roughly 19.5% of the GDP.

To summarize:

In (insert time period here), the top bracket was (insert percentage here).

America's tax revenues were roughly 19.5% of the GDP.

David Ranson, writing in the Wall Street Journal, calls it Hauser's Law, after the economist who first noted the post-WW II pattern 15 years ago. It's jarring, counterintuitive--and the last thing the likes of Barack Obama or Hillary Clinton want to hear:

The data show that the tax yield has been independent of marginal tax rates over this period, but tax revenue is directly proportional to GDP. So if we want to increase tax revenue, we need to increase GDP.

What happens if we instead raise tax rates? Economists of all persuasions accept that a tax rate hike will reduce GDP, in which case Hauser's Law says it will also lower tax revenue.

Gee...imagine that.

--Shack