In 2004 at a session of the Southern Economic Association meetings in New Orleans, Paul Krugman was the speaker and in the Q&A (with Dr. Joe Salerno sitting next to me), I asked Krugman if he supported the 70 percent tax rates that existed before the tax cuts of 1981. “No!” he exclaimed, and added (these exact words), “Those rates were insane!” Today, we can say that Krugman now has endorsed insanity with a recent blog post, as he lavishes praise on a paper that endorses…70 percent tax rates: Now, this doesn’t imply a 100% tax rate, because there are … Continue reading Paul Krugman: Insanity Now Is Good Taxation Policy