Skip to main content

Wow!  From St. Ronnie's White House, David Stockman, architect of trickle down economics, says raise taxes:

Q: Give me your prescription to fix the economy.

A: We have to eat our broccoli for a good period of time. And that means our taxes are going to go up on everybody, not just the rich...Let the Bush tax cuts expire. Let the capital gains go back to the same rate as ordinary income. (Capital gains are taxed at 15 percent, while ordinary income is taxed at marginal rates up to 35 percent.)

I think hell may have just frozen over...

Stockman's presecription comes in a wide ranging interview with the AP. He still has some slimy things to say, but to read a person of his political bent (GOP) call for higher taxes is almost unbeliveable as reading this:

Here's the heart of the matter: The Fed is a patsy. It is a pathetic dependent of the big Wall Street banks, traders and hedge funds. Everything (it does) is designed to keep this rickety structure from unwinding. If you had a (former Fed Chairman) Paul Volcker running the Fed today — fearless and independent and willing to scare the hell out of the market any day of the week — you wouldn't have half, you wouldn't have 95 percent, of the speculative positions today.

Q: You sound as if we're facing a financial crisis like the one that followed the collapse of Lehman Brothers in 2008.

A: Oh, far worse than Lehman. When the real margin call in the great beyond arrives, the carnage will be unimaginable.

This borders on the surreal for me.  Has David Stockman had a religious experience that he could attack his own like this?  It certainly feels as if he's telling the truth.  I won't include any more of the interview here, but Stockman's words are chilling, the house of cards has yet to fully unwind and the economic growth we've been experiencing is rickety and yet may be the best we'll have for a decade.

OK, just one more delicious quote.  When asked why increase capital gains taxes, Stockman replied:

With capital gains, they give you this mythology: You're going to encourage a bunch of more jobs to appear. No, most of capital gains goes to speculators in real estate and other assets who basically lever up companies, lever up buildings, use the current income to pay the interest and after a holding period then sell the residual, the equity, and get it taxed at 15 percent.[ed.  He's looking at you Mitt!]

Trickle down?  Job creators?  Myths!

EMAIL TO A FRIEND X
Your Email has been sent.
You must add at least one tag to this diary before publishing it.

Add keywords that describe this diary. Separate multiple keywords with commas.
Tagging tips - Search For Tags - Browse For Tags

?

More Tagging tips:

A tag is a way to search for this diary. If someone is searching for "Barack Obama," is this a diary they'd be trying to find?

Use a person's full name, without any title. Senator Obama may become President Obama, and Michelle Obama might run for office.

If your diary covers an election or elected official, use election tags, which are generally the state abbreviation followed by the office. CA-01 is the first district House seat. CA-Sen covers both senate races. NY-GOV covers the New York governor's race.

Tags do not compound: that is, "education reform" is a completely different tag from "education". A tag like "reform" alone is probably not meaningful.

Consider if one or more of these tags fits your diary: Civil Rights, Community, Congress, Culture, Economy, Education, Elections, Energy, Environment, Health Care, International, Labor, Law, Media, Meta, National Security, Science, Transportation, or White House. If your diary is specific to a state, consider adding the state (California, Texas, etc). Keep in mind, though, that there are many wonderful and important diaries that don't fit in any of these tags. Don't worry if yours doesn't.

You can add a private note to this diary when hotlisting it:
Are you sure you want to remove this diary from your hotlist?
Are you sure you want to remove your recommendation? You can only recommend a diary once, so you will not be able to re-recommend it afterwards.
Rescue this diary, and add a note:
Are you sure you want to remove this diary from Rescue?
Choose where to republish this diary. The diary will be added to the queue for that group. Publish it from the queue to make it appear.

You must be a member of a group to use this feature.

Add a quick update to your diary without changing the diary itself:
Are you sure you want to remove this diary?
(The diary will be removed from the site and returned to your drafts for further editing.)
(The diary will be removed.)
Are you sure you want to save these changes to the published diary?

Comment Preferences

  •  WooHoo! Good one! (5+ / 0-)
    Recommended by:
    mrsgoo, worldlotus, Youffraita, BusyinCA, Aspe4

    Thank you so much.

    Science is hell bent on consensus. Dr. Michael Crichton said “Let’s be clear: The work of science has nothing to do with consensus... which is the business of politics. Science, on the contrary, requires only one investigator who happens to be right,”

    by Regina in a Sears Kit House on Sun Mar 04, 2012 at 10:53:02 PM PST

  •  Actually, Stockman (9+ / 0-)

    might be getting more vocal recently...but he has been sounding like a sane economist (Krugman-lite, perhaps) for a while now.

    I don't have links at my fingertips so, well, apologies.  But I DO read the NYT, with special attention to the Business section (and the business columnists) and this is not the first time Stockman has criticized GOP fiscal/financial policy.  I think it started when he saw what GWB hath wrought...if you know what I mean.

    "Jumped the shark" does come to mind.

    And so I've lately been under the impression that Stockman is not insane, and might even realize that trickle down means "piss on the little guy" and it's not good fiscal policy -- not for anyone, not even for corporations.

    Just a hunch based on my reading.

    I call him Rick Scumtorum because he IS scum: pond scum, with the brain of an alga.

    by Youffraita on Sun Mar 04, 2012 at 11:57:26 PM PST

  •  Heh, a few of us around here have been.... (7+ / 0-)

    .... saying that: "Let the capital gains go back to the same rate as ordinary income."

    Now that Stockman says it, I suppose it's no longer politically unthinkable.   BTW, what led to his departure from the Reagan administration was a flap over something he said to the effect that trickle-down was just a way of fattening up the fatcats at the expense of everyone else.  

    Interesting guy.  

    "Minus two votes for the Democrat" equals "plus one vote for the Republican." Arithmetic doesn't care about your feelings.

    by G2geek on Mon Mar 05, 2012 at 12:46:46 AM PST

  •  The joke of trickle down (3+ / 0-)
    Recommended by:
    BusyinCA, Aspe4, NoMoreLies

    cutting taxes for the rich in the hopes that some will eventually find its way down to the rest of us. Meanwhile, the large deficits produced are used as an excuse to gut the programs which, right now, directly and without controversy benefit the working and middle class. How did people fall for this crap?

    •  I can't explain two generations of stupid. (1+ / 0-)
      Recommended by:
      godlessmath

      I always hated RRR. My life went to shit after he opened the floodgates of union busting after he fired the air traffic controllers.

      Item #1 Now the reich wing wants to get 1) a coin 2) a Mt. Rushmore spot 3) a DC memorial 4) sacrifice a nation, for their St. Ronnie. Haven't heard much about that lately, maybe they are having trouble raising funds from the recently unemployed.

  •  My best friend is a Republican (0+ / 0-)

    ... and he also thinks that capital gains should be taxed as income.  He doesn't think that the two should be treated any different in terms of taxation.

    That being said, he's in favor of lowering the top marginal rate down to a lower level in order to implement this change and make it revenue neutral.  If that level happens to be 25 or 30%, then all top marginal taxes (carried interest, income, corporate or capital gains) should all be on the same level.

  •  Money is not freedom when used to enslave. (0+ / 0-)

    The current situation of tax cuts for the wealthy which allows them extra money to influence our legislatures and prop up a sympathetic congress has to be changed. An oligarchy has been created that secretly is changing the civil management of the nation for the benefit of corporations, industrialists and financial speculators.
    Extra taxation on the wealthy is needed for the operation of the country and for the extra protection needed to keep their fortunes safe. That's what their taxes go for, the poor don't need protection for their fortunes, their poor fortune most often has them fighting for the wealthy rather than protecting themselves.

Subscribe or Donate to support Daily Kos.

Click here for the mobile view of the site