Tuesday, March 15, 2011

Running out of other people's money

Kevin Williamson explains how we can't tax the rich to erase the deficit in "There aren't enough millionaires." For example: if we depend on only millionaires to wipe out the shortfall, we would have to increase their annual federal taxes by $6 million. Even people pulling down a cool million a year can't pay $6 million in taxes.


Gramm cracker said...

You mean a sudden, humongous tax increase on the rich wouldn't completely wipe out a decade of tax cut/war/recession deficits in a single year?

Wow. No sh-t. That's a genius argument for not taxing that group an extra dime, for any reason, ever.

Eric said...

Well, that's right, but the larger point is that all Americans need to take responsibility for overspending. As Jon Stewart said (about Illinois voters complaining about a tax hike): "How about paying for what you're getting?"

Also, historically, revenues as a percentage of GDP rarely rises above 19% (Clinton's dotcom bubble was a aberration at 20%). We're currently borroiwng 42% of every dollar spent and deficit:GDP is approaching 30%. How much longer can this go on?

Eventually VISA and Mastercard cut off the credit cards in Vegas.