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View Diary: Who creates jobs? The middle class (103 comments)

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  •  It's not so much that they've increased them... (0+ / 0-)

    as that they can't afford in a political sense to decrease them. The problem rests on the fact that states and municipalities have been absorbing more and more of the costs of providing services and have to pay for it somehow. They could cut sales taxes, but that would insure that they'd have to cut services along with them as revenue dried up. Those services, paid for by sales taxes at the state and especially the local level, mostly go to the 99% (and even more so to the lowest 80%) and would hurt the very people who would benefit from the sales tax reduction. The 1% would barely notice the difference and can pay for services themselves without having to rely as much on local and state governments.

    It's one of those ideas that sounds good, but isn't so good when you work through the implications. If we could replace the sales taxes with more progressive taxation, that would be great, but in today's political climate that kind of proposal has about the same chance as a snowball in a microwave.

    Conservito delenda est pro is deleo orbis terrarum!

    by Stwriley on Thu Dec 01, 2011 at 01:26:36 PM PST

    [ Parent ]

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