Obama’s spray-on hair of fiscal policy

Dr. MIlton Wolf:  It has become increasingly obvious that to balance America’s national budget, we must cut spending and optimize tax revenues. The challenge is to find the tax rate that will best yield the necessary revenue. Consider these obvious scenarios: A tax rate of zero percent would yield zero in revenues, while a tax rate of 100 percent would also yield zero in revenues because no one would work for nothing. Americans aren’t stupid. Clearly, then, simply increasing tax rates will not always increase revenues.