Soaking the rich doesn’t work

[Tom Joad]

Originally Posted by whell

Yeah, the left likes to keep pointing this out. It's an analogy that lacks context though. The only way the analogy works is if we also bring back Carter era run away inflation and double digit interest rates, and push the unemployment rate back up above 8%.

Raising the cost of converting capital and increasing the disincentives to take the risk of opening / expanding businesses just might get us there. Where's my Gerry Ford WIN button?

Right, because the economy really sucked back in the 1950's when the top bracket was 90%.

[whell]

Originally Posted by Tom Joad

Right, because the economy really sucked back in the 1950's when the top bracket was 90%.

It actually did, unless you're using "Happy Days" as your historical reference. It was a period marked by inflation, recession, slow economic growth, and recession that reached its peak in the mid 50's. The housing sector was rocking, but that was in part due to the GI Bill's impact.

The economy saw a brief period of growth but went into the tank again around '57 or '58. Industrial production and corporate profits fell and unemployment hit 7.5 percent. President Eisenhower didn't try to intervene by leading any policy initiatives because he worried more about inflation and not unemployment. By 1959 the gummint was running a $12 billion deficit, a new record for a budget shortfall during peacetime.

So yeah, let's drop that 90% top rate back into place.

[BlueStreak]

Low wages for our workers is what doesn't work. Colossal fortunes stashed in offshore accounts by greedy pigs who are afraid someone other than themselves might benefit from it is what doesn't work. Giving tax cuts to people who don't need them and most likely, will just stockpile it in the Caymans with the rest of their loot is what doesn't work.......

That's what we've watched go on for the last few decades as the country swirls down the commode.

Do you realize what a total Putz you are?

Dave

[piece-itpete]

This is one putz who believes all cannot be made right by tax & spend.

Pete

[finnbow]

Originally Posted by piece-itpete

This is one putz who believes all cannot be made right by tax & spend.

Pete

While I don't disagree, it's better than increasing spending while decreasing taxes, a Republican specialty.

[piece-itpete]

When the GOP tries to rein in spending, the left pitches a fit and lets the government shut down instead.

I do agree, a politician never met a dollar he didn't like. But the time of reckoning is coming.

Pete

[BlueStreak]

Originally Posted by piece-itpete

When the GOP tries to rein in spending, the left pitches a fit and lets the government shut down instead.

I do agree, a politician never met a dollar he didn't like. But the time of reckoning is coming.

Pete

Except they seem to be highly selective at cost cutting and they usually seek to cut it from where it's needed the most in the name of putting it where it isn't needed at all.

Dave

[donquixote99]

I would argue that under-taxation leads to over-investment, as a casino mentality goes wild. Remember right before the last crash, when housing developments were mushrooming, and big retail boxes were sprouting up every mile in the 'hot' suburbs?

Wannabe 1-percenters looking for the big score. I say taking away some of the incentive for THAT leads to sounder investment.

[whell]

Tell you what, gents. Why don't we pick a state as a crucible for Tom's 90% top rate suggestion. Maybe a nice Blue state with all that new-found gummint wealth like Maryland. Its got more 1% types per capita than anyone else. We can tax them more - cuz they really don't need that money - and we can suck it into Washington where it can be redistributed by all the folks that we just took it from. Kinda like the fox guarding the chicken coop, I wonder who all that redistributed wealth will find its way back to?

http://www.washingtonpost.com/news/l...nt-far-behind/

[Tom Joad]

Over the past 50-60 years there is almost a direct correlation between the lowering of taxes on the rich and the deterioration of the economy.

Trickle down economics has been an abject failure.