President Wilson Was a Suppler-Sider?

In the excellent book Taxation: The People’s Business (read it here, page 137) by Andrew Mellon, written in the 1920s (and found by Thomas Sowell in a recent column), I found the following quote from Wilson:

At the same time President Wilson in his

Message to Congress stated as follows :
“The Congress might well consider
whether the higher rates of income and
profits taxes can in peace times be effectively
productive of revenue, and whether
they may not, on the contrary, be destructive
of business activity and productive
of waste and inefficiency. There is
a point at which in peace times high rates
of income and profits taxes discourage
energy, remove the incentive to new enterprise,
encourage extravagant expenditures
and produce industrial stagnation
with consequent unemployment and other
attendant evils. “

This must be an accurate quote given who wrote the book, but it’s still pretty amazing.  There’s many more nuggets of wisdom in that book; Mellon is very articulate, more so than modern supply-siders have been in recent years.

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