In an apt follow-up to this post, the Chicago Tribune worries about "Entitlement Nation – More are living of tax revenues, and fewer are providing them":
One problem is that as more people get benefits and fewer pay for them, the democratic pressures to contain federal spending weaken. The Journal notes that payments to individuals of one kind or another now account for 64 percent of all outlays, up from 47 percent in 1990. And people who don't pay income taxes may be more inclined to raise them on people who do.Alexis de Tocqueville had it right: "A democratic government is the only one in which those who vote for a tax can escape the obligation to pay it."
Robert Reischauer, head of the liberal Urban Institute, says he is not worried: "If there became an expectation that government was going to provide over half the population's well-being to a significant degree without requiring anything of the recipients, there would be reason for concern. I don't think that's where we're headed."
Actually, that is exactly where we are headed. It's up to Congress and the president to change direction before it is too late.
Extra - Hot Air: "Big Media's biggest failure?"
7 comments:
Warren Buffett, yesterday:
"I think there should be tax increases for people in the high income levels."
That loser just doesn't understand the economy.
Over 300 economists signed a letter averring that tax hikes would have a "deleterious effect" on the economy.
Paul Krugman responded by calling them "poopy heads."
http://dailycaller.com/2010/09/22/over-300-economists-counter-obama-say-not-extending-bush-era-tax-cuts-to-wealthier-americans-would-have-deleterious-effects/
Wow, the "National Taxpayers Union" and their experts have come out against letting the tax cuts lapse. This stunning letter is a true game changer.
Alan Greenspan says "I should say they should follow the law and let them lapse" and "I am in favor for the first time in my memory of raising taxes." That loser just doesn't understand the economy.
Yeah, and Krugman has a Nobel Prize - just like Obama!
So vote on the tax increase already, geez! The economy has been paralyzed with uncertainty and the Democrats have extended it until after the elections. Profiles in courage.
The letter signed by over 300 economists also includes a Nobel Prize winner. But I guess he's the good kind of Nobel laureate, instead of the stinky stupid kind.
"CBO [the nonpartisan Congressional Budget Office] has assessed the potential of a variety of fiscal policy options for promoting economic growth and increasing employment. In particular, the agency has evaluated the timing and cost-effectiveness of the stimulus to output and employment that would be provided by different fiscal actions.
Policy options aimed at assisting households would spur demand for goods and services to varying degrees and thereby boost production to varying degrees. Because businesses’ decisions on investing and hiring depend on the demand for their products, higher demand and production would lead to more investment and hiring. The size of those effects would depend largely on which households got the money. Policies that temporarily increased the after-tax income of people who are relatively well off would probably have little effect on their spending because they generally would be able finance their consumption out of their income or assets without such a change."
http://www.cbo.gov/ftpdocs/112xx/doc11255/Unemployment_Testimony.shtml
"Reducing Income Taxes in 2011" ranked 11th of the 11 policy options the CBO was asked to assess. They judged extending the GOP tax cuts to be the least effective way to reduce employment and spur the economy.
Now Bill Gates says they should raise taxes on the wealthy. That loser just doesn't etc. etc.
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