. >> rose: i could undstand that if it was 75% to 80% but not at a marginal tax rate of, what? >> 40%. >> rose: 40%. >> that's what we're talking about. well, every little bit seems to matter. there's no mac cutoff. there's no threshold. when rates came down in the 1986 act, they came down from 50% to 28%. at the top and less at lower rates and there was a big response to that. so it wasn't 70%, 80%, it was 50% to start. >> rose: so whatever john kennedy did in the early '60s... '60 or '61, '62, what the argument was then that he found out if you lowered taxes you could increase revenue, correct? >> there was a certain amount of pure knesianism in that. that's not what i'm talking about now. i'm talking about in an economy which one of these days is going to be a fully employed economy >> rose: what date do you perceive that to be? >> well, 1986 was a time when reducing tax rates was not about stimulating aggregate demand, it was about impving incentives. and, in fact, it was done in a revenue-neutral way. they broaden the tax base, they got rid of a lot o tax expendites and ta