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View Diary: Steven Rattner offers ideas on raising tax revenue and I respond (72 comments)

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  •  No taxes should be increased (1+ / 0-)
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    unless offset by corresponding spending increases until the economy is creating enough jobs.  This is lost in the discussions here: but Keynes would be aghast at raising taxes on anyone during a period of economic softness.

    Those advocating going over the Fiscal Cliff are just dead wrong in my opinion.

    Putting that aside, I think Democrats need to go big on tax reform, and go simple.

    When I say go big, they need to listen to what Monyhan said for 30 years: the Social Security tax is terrible tax for the following reasons:
    1.  It is regressive.
    2.  It increases the marginal cost of employment through the employer match.

    I would also go simple.  Remove the distinction between cap gains and ordinary income.  Eliminate most deductions.  

    So there would be one tax and it would pay for all government activities (though I would love to see carbon tax that isn't going to happen).

    I am part of an e-mail group that includes a couple of people who use to post here (Bondadd, NDD).  One of the trial balloons that has been floated is going back to the 1986 tax law.  They were for it - I haven't studied it enough to know one way or another - but that is the direction I would go.  

    The bitter truth of deep inequality has been disguised by an era of cheap imported goods and the anyone-can-make-it celebrity myth - Polly Toynbee

    by fladem on Sun Nov 25, 2012 at 06:56:55 AM PST

    •  not true, actually. taxes for high income aren't (2+ / 0-)
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      johanus, sebastianguy99

      Keynesian. Taxes on income above $100k or so doesn't significantly affect the economy (this includes capital gains rates).

      You can raise taxes on the rich and increase stimulus spending to match and get a net stimulus.

      This is important, because the Village reports the opposite.

    •  imo, it is more important (0+ / 0-)

      to raise taxes on the rich when possible than to avoid anything which would hurt growth a little.  deficit and debt is a big political problem in governance and higher taxes on rich are necessary.

      i agree that 1 or 2 taxes is a much much better idea than the current terrible system, and that it would be better to eliminate the payroll tax.

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