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View Diary: Reminder: balancing the budget doesn't help the economy (20 comments)

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  •  Increases taxes on business could help quite (8+ / 0-)

    a bit. Right now they have no reason to do anything with the trillions they have lying around. By taxing them on that money we could either get revenues or, better yet, get them to step up hiring and buying goods/services to stimulate the economy. Why this isn't #1 on the "List of Things to Do" is pretty much proof the plutocrats and the corporations are still running the show in DC.

    Spite is the ranch dressing Republicans slather on their salad of racism

    by ontheleftcoast on Fri Oct 11, 2013 at 03:48:40 PM PDT

    •  federal gov't doesn't tax to get revenue (3+ / 0-)
      Recommended by:
      Karl Rover, Kevskos, Sunspots

      it's sovereign in its own currency.

      Where did the people who pay taxes get that money? Ultimately through the government spending money into the economy. So how did the government get that money it spent? The vicious circle is squared when one realizes it simply created that money and authorized it to be spent.

      Taxes serve many purposes--adjusting the distribution of wealth, discouraging or encouraging certain kinds of behavior (Pigouvian taxes such as a carbon tax, a Tobin tax on financial transactions), etc. But the one thing they don't do is garner revenue (at least not at the federal level; states aren't sovereign and so do need to tax to get revenue).

      The best thing the government could do now is engage in a New Deal-style job creation program. This would pump money into the economy from the bottom up. Then, when it's going again, implement a progressive tax to ensure the wealth is distributed more equitably.

      "In America, the law is king." --Thomas Paine

      by limpidglass on Fri Oct 11, 2013 at 04:55:02 PM PDT

      [ Parent ]

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