The Entrepreneurial Mind

The Brookings Institution’s Hamilton Project (affiliated with centrist Democrats) has released a new series of reports focused on reforming America's tax system. Here is a link to their report.

What do they have in store for us if a Democrat assume power? Higher marginal tax rates for one thing. James Pethokoukis conducted an interview with Larry Summers (part of the last Clinton cabinet). Here is what Mr. Summers had to say about raising taxes:

The purpose of the tax system is to raise revenue in the best possible way, but you have to be aware of the changing economic context. At a moment like the present when inequality has increased very dramatically, it means that being smart about the tax code means making adjustments in the direction of increased progressivity. So I don't think we are asking too much of the tax code, given that we need to raise more revenue.

Sorry Mr. Summers, but you are living in a world that no longer exists -- this is the wrong time to increase top marginal tax rates. This is no longer the 1900s with our corporate economy where one worker in five worked for a Fortune 500 company. We are now in an entrepreneurial age where 50% of the workforce is employed by small business owners. And we know from studies from around the world that higher tax rates do one thing in an entrepreneurial economy -- they slow down expansion and growth.