Re: [OT] USA Elections
- Posted by mattlewis (admin) Nov 05, 2012
- 2812 views
My argument is simple: As an example of what you are saying, the Bush tax cuts resulted in a concentration of wealth - instead of a trickle down effect that was expected to benefit the middle class.
So the middle class didn't benefit from a recovered economy? What do you suppose wealthy people do with their money? They invest it.
Or buy jet planes.
Jet planes which are generally made by very well paid workers. Win, win! Yes, they definitely consume things. And other people produce them and get paid for them.
Even so - a 30% tax on the middle class, when the top earners are taxed 15%?
I guess you're referring to capital gains taxes? These lower rates actually bring in more revenue, because there are more transactions at lower rates. My feeling on taxes is that they should be as low as possible such that they can fund the government and minimize additional friction / distortions of the economy.
But why was there a possibility of a shutdown to begin with? Because people were starting to question the fiscal soundness of US sovereign debt (fortunately for us, with all of our problems, we still look a lot safer than the rest of the world). You can only kick the can down the road so many times before bad policies ripen.
No, there was a possibility of a shutdown because we hit the debt ceiling. The soundness of US sovereign debt had no effect on this debate - and the ease of sales that occured after the ceiling was raised is more proof on the pudding.
Except that the main credit ratings agencies were talking about downgrading our credit rating due to the excessive amount of debt and the apparent policy of more of the same. Without that threat, I'm sure the ceiling would have been increased with just the normal amount of partisan approved posturing with which it has always been raised in the past.
Matt
