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To: Jim McMannis who wrote (114909)	4/8/2008 6:00:22 AM
From: Barry	Read Replies (1) \| Respond to of 306849

The economy in the US did grow enormously during the 1950s and 1960s - while top marginal federal tax rates were above 70%. Innovation occurs independent of tax rate policy. Scientific advancement didn't give a rat's a$$ about marginal tax rates in the 80% - 90% range - the transistor was developed during this time, among many other semiconductor related innovations. Having the top federal marginal tax rate drop from 70% during the 1970s to 28% in 1987 and today's 35% (or 15% for qualified dividends and LTCGs) has only served to widen the gulf between those lucky enough to nab a high income versus those toward the bottom of the income totem pole. The drop in the top U.S. marginal tax rate has neither accelerated nor decelerated technological progress or this country's economic growth. Taxation policy primarily affects distribution of wealth. It does not drive economic growth. Taxation policy can heavily influence certain economic behaviors - such as paying one's self a disgusting amount bearing no relationship to one's contribution to a company's bottom line, should the marginal tax rate be low enough to make this kind of obscene economic grab worth its while. U.S. historical taxation policy has very little correlation with American scientific innovation, driving down the cost of living, or the driving up of America's standard of living.