Alan Reynolds ("Memo to Robert Reich: Why 70% Tax Rates Won't
Work," op-ed, June 16) distorts my proposal and ignores my
argument. I proposed a top marginal income tax rate of 70% only
on incomes of more than $15 million. Under my plan, incomes
between $5 million and $15 million would be subjected to a 60%
rate, and incomes between $500,000 and $5 million to a 50% rate.
I further proposed substantial rate reductions for people with
incomes under $100,000.  My argument, which Mr. Reynolds doesn't
rebut: During the almost three decades spanning 1951 to 1980,
when the top rate was between 70% and 91%, average annual growth
in the American economy was 3.7%. Between 1983 and the start of
the "great recession," when the top rate ranged between 35% and
39%, average growth was 3%. The long-term slowdown is related to
the fact that since the early 1980s a larger and larger share of
total income has gone to the top (the richest 1% of Americans
got 10% of total income in 1980, and get more than 20% now),
leaving the vas