Comments on: How to solve the fiscal dilemma http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/ A slice of lime in the soda Sun, 26 Oct 2014 19:05:02 +0000 hourly 1 http://wordpress.org/?v=4.2.5 By: mckibbinusa http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15744 Thu, 10 Jun 2010 01:21:25 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15744 Like it or not, the people are not going to consent to austerity measures, and the government is never going to allow a default. That leaves only the inflation route (i.e., “printing” money), which requires neither a public referendum or mandate. More about using inflation to reduce the deficit and rout entitlements at:

http://wjmc.blogspot.com/2010/05/using-i nflation-to-reduce-public-debt.html

Thank you for the opportunity to comment…

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15714 Wed, 09 Jun 2010 16:22:17 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15714 Sensei, in the UK the deficit this year is over 12% of GDP. To have that wiped out by 4 months of growth would imply an annual growth rate of over 30%. Hands up who thinks that is likely?

Off the top of my head the US federal government has been running a deficit for the last 30 years – with the exception of a few years under Clinton – during a general strong growth period.

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By: Danny_Black http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15713 Wed, 09 Jun 2010 16:13:30 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15713 Think about how much good tax advice costs and how much organising your affairs to minimise your tax income costs. As long as the saving on tax is more than the cost of getting that saving “soaking the rich” isn’t going to work.

Also the “enormous” budget cuts actually turn out to be tiny. Remember the argument in the UK election was whether making a cut of less than 1% of government expenditure would collapse the economy or not.

The fact is that the governments can’t afford their social welfare system.

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By: sditulli http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15706 Wed, 09 Jun 2010 14:16:20 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15706 Are we not talking about something different than income taxes though? It seems to me we already have rather hefty income taxes especially after the Bush Cuts are removed. 39.6% plus 2.9% for medicare and State taxes adds up to a pretty high rate. I think an upper bound on income taxes is probably 50% before people cut back income production. We are talking about tax reform that broadens the tax base and raising middle class taxes which are virtually nothing (Except for the SS tax)

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By: PaulV http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15705 Wed, 09 Jun 2010 13:21:24 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15705 MORALITY AGAIN!
‘I don’t think middle-class opposition to tax hikes on the rich comes primarily from pecuniary self-interest; I think it’s primarily moral.

Posted by dWj ”

Does dWj think that Eisenhaur — a republican — was immoral, when he raised the top tax rate to 90 percent. Funny, how morality comes in when you tell people not to default on their mortgages and not to tax the rich — not when teachers get fired and garbage in the street is uncollected or Americans simply die because they do not have insurance.

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By: robertwaldmann http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15700 Wed, 09 Jun 2010 11:48:46 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15700 Thanks for the link. It was especially generous as I was just adding more evidence to Yglesias’s post.

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By: VENTURES http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15699 Wed, 09 Jun 2010 11:34:21 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15699 The U. S. government is already in the Venture Capital business. We own 61% of General Motors which just launched its $100 million General Motors Venture Fund to support new transportation technology. The Government Services Administration could futher generate new jobs and businesses in America by transferring its billions in excess real estate to American entreprenuers that create new American jobs. This would not cost the GSA any new money, as they already own the real estate and need a creative new avenue to use it. What a concept!!!!

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By: tyates http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15689 Wed, 09 Jun 2010 07:01:56 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15689 It’s always funny when leftists complain that the American public is too stupid to understand their own interests. They don’t get that these “dumb” Americans are smart enough to see how wealth redistribution worked in other countries and they don’t want any part of it. I wonder at what point do you guys abandon the socialist high-tax government-run utopia vision and say that there won’t be any money for anyone to spend unless we can put some pro-growth policies in place ASAP.

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By: breezinthru http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15686 Wed, 09 Jun 2010 04:15:52 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15686 The truth? There are a lot of stupid non-wealthy Americans.

A case in point: There was legislation designed to only tax the estates of America’s wealthiest people when they died. Savvy politicians working on behalf of the wealthy elite renamed the tax as the Death Tax and ran ads making it appear that that tax would effect everyone, rich and poor alike.

Poor, stupid Americans who would not have been affected at all by the tax fought vehemently to prevent it from becoming law.

And they succeeded because not that many people in Washington DC really wanted that bill to become law anyway.

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By: Andy_McLennan http://blogs.reuters.com/felix-salmon/2010/06/08/how-to-solve-the-fiscal-dilemma/comment-page-1/#comment-15680 Wed, 09 Jun 2010 02:31:34 +0000 http://blogs.reuters.com/felix-salmon/?p=4168#comment-15680 No doubt you’ve already seen the poll data that Matt Yglesias posted. It is the case that raising taxes on the prosperous is unlikely to happen soon, but not because the people don’t want it. Politicians face a variety of pressures: fund raising, social milieu, and especially what kind of job they’ll get after they leave office. Blanche Lincoln didn’t prostitute herself for the Walton family because the voters of Arkansas demanded it, Evan Bayh doesn’t think the people of Indiana would cruficy him he advocated raising the top bracket rate, and Chuck Schumer isn’t looking at polling data when he chooses his position on the carried interest exemption. These people think that the voters are unlikely to punish them very much for doing things that will be richly rewarded in other ways.

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