The Myth of Tax Rates: How the Rich Get Richer

SHARMINI PERIES: Michael, in your new book, J is for Junk Economics, we are going to talk about Trumpís plan to lower taxes. He has said that he would reduce corporate taxes from 35% to 15%. The 35% itself is a bit of a myth, because I donít think there are too many corporations out there who do pay the 35%. But heís going to reduce the number of tax brackets as well, he says, from seven to three.

And your myth number 11, which is progressive income taxes should be abolished in favor of flat tax, is a myth, just one tax rate for everyone. Does this make any sense to you?

MICHAEL HUDSON: It certainly makes sense if youíre a member of the 1%, and you want to avoid paying taxes. You want the taxes to be paid by the 99%. Thatís their dream. If you want to see where Trump is moving, look at what the United States neoliberals advised Russia to do after 1991, when they promised to create an ideal economy. Russia was under the impression that the neoliberal advisors were going to make Russia as rich as the United States. What they really did was create a kleptocracy that was virtually tax-free.