My taxes should go up but not because wealth is immoral and not because most wealthy people are greedy grifters. I want taxes to go up because when I take a hard look at the deficits and debt of our federal government, I see great peril.
We can’t tax our way out of it. Feds are cruising at two trillion a year in deficits. Looking only at income tax, you’d have to push rates on the top quartile into the 60s to balance the budget. Dems want to spend even more and GOP hasn’t been fiscally hawkish at all.
Either we are bailed out by growth (hopefully!) or “mandatory” spending will get cut back (raising retirement age, lifting Medicaid thresholds) or flattened in real terms by extreme inflation. My guess is the latter but I hope it’s growth!
I agree - I think productivity (which is often short-term inflationary)and shifting to a new paradigm has to be a massive part of the solution. Plus it will increase 1% wealth, so even the same tax rate will yield more absolute income. Historically, technological progress that enables more efficient resource use/extraction is what has boosted the economy. Not to mention - it’s hard to imagine a bunch of CEOs today soberly agreeing to raise taxes for the good of the nation.
Good analysis, but it misses one essential ingredient: spending. Specifically, government spending. Faced with increased income, our Congress could find programs to spend it on, likely totaling more than what is realized by the increased taxes. I'll agree to increased taxes if you'll agree to frozen government spending. Otherwise, it's like a dog chasing its tail. As for a national sales tax, it is regressive.
I am not as well versed financially speaking and it's impacts on the government. So I am asking from a less than knowledgeable position. How do the DSA people think we could implement the concepts you are speaking of here? Is there a risk that enough DSA people come into office, make policy and we have even less collections and more spending as we move forward? If so, I imagine this would take many years to achieve. But you have Sanders and Warren and others advocating for DSA-like candidates to be elected. And I believe non some level this is a call for "anybody but Trump" more than it is the policy positions of the proposed candidates.
Seeing several comments about the need to cut spending, as if there was really much there to cut. As Paul Krugman often says, the US government is an insurance company with an army. Raising the retirement age sounds simple, unless your job requires standing all day. The people who most need social security are often approaching disability as they approach retirement. Raise rates, starting with the current 24% bracket and top out at least 50% for the highest earners. Your suggestions on SS taxes and capital gains rates are needed too. Raise sufficient income, and interest rates will drop enough to produce additional saving. The economy was pretty damn good when Clinton balanced the budget. Then W decided to go back to trickle-down and fight two wars when one would have been enough.
Yes...but is anyone on either side of the aisle really listening.
Excellent piece !!!!
We can’t tax our way out of it. Feds are cruising at two trillion a year in deficits. Looking only at income tax, you’d have to push rates on the top quartile into the 60s to balance the budget. Dems want to spend even more and GOP hasn’t been fiscally hawkish at all.
Either we are bailed out by growth (hopefully!) or “mandatory” spending will get cut back (raising retirement age, lifting Medicaid thresholds) or flattened in real terms by extreme inflation. My guess is the latter but I hope it’s growth!
I agree - I think productivity (which is often short-term inflationary)and shifting to a new paradigm has to be a massive part of the solution. Plus it will increase 1% wealth, so even the same tax rate will yield more absolute income. Historically, technological progress that enables more efficient resource use/extraction is what has boosted the economy. Not to mention - it’s hard to imagine a bunch of CEOs today soberly agreeing to raise taxes for the good of the nation.
I agree with the sentiment, but taxation is inherently coercive.
Coercion always ends up a tool of the resentful, it's just in the nature of envy.
Good analysis, but it misses one essential ingredient: spending. Specifically, government spending. Faced with increased income, our Congress could find programs to spend it on, likely totaling more than what is realized by the increased taxes. I'll agree to increased taxes if you'll agree to frozen government spending. Otherwise, it's like a dog chasing its tail. As for a national sales tax, it is regressive.
I am not as well versed financially speaking and it's impacts on the government. So I am asking from a less than knowledgeable position. How do the DSA people think we could implement the concepts you are speaking of here? Is there a risk that enough DSA people come into office, make policy and we have even less collections and more spending as we move forward? If so, I imagine this would take many years to achieve. But you have Sanders and Warren and others advocating for DSA-like candidates to be elected. And I believe non some level this is a call for "anybody but Trump" more than it is the policy positions of the proposed candidates.
Seeing several comments about the need to cut spending, as if there was really much there to cut. As Paul Krugman often says, the US government is an insurance company with an army. Raising the retirement age sounds simple, unless your job requires standing all day. The people who most need social security are often approaching disability as they approach retirement. Raise rates, starting with the current 24% bracket and top out at least 50% for the highest earners. Your suggestions on SS taxes and capital gains rates are needed too. Raise sufficient income, and interest rates will drop enough to produce additional saving. The economy was pretty damn good when Clinton balanced the budget. Then W decided to go back to trickle-down and fight two wars when one would have been enough.
Not a word on spending and market reforms of the biggest deficit drivers - Medicare and Social Security?
Where is the chart for the growth of government tax revenues by source?
What do you think the billionaires do with their billions?