NY Times: The Rich Can Afford to Pay More Taxes

New York Times ^ | August 23, 2011 | By BRUCE BARTLETT

[longtermmemmory]

congress with the super budget committee has already fallen for the raise taxes meme.

[mo]

The FairTax is the First leg of the 3-legged stool of Federal Reform.

The Second is regulatory relief to within Constitutional Limits,

The Third is relief of professional politicians-term limits as well as restoration of original Congressional Apportionment with Repeal of the 17th Amendment

Nothing happens in the USA until these things happen.

[ctdonath2]

Federal revenue never exceeds 20% of GDP. We’re over 18% now. Doesn’t matter who you squeeze how, the feds aren’t getting more than about another 1% GDP - which is about $140B, nowhere near “enough”.

Given that, the next obvious thought is to raise GDP. Start with the fact that GDP fell for the first time in ‘09, then consider that for ~15 years before that it rose at $500B/yr. At this point, just getting back to normal growth would be a remarkable accomplishment - and would net another $100B/yr annual growth in revenue, again nowhere near enough. Outer-limits SWAG is doubling long-term GDP growth, growing revenue by a still-inadequate $200B instead.

So squeezing hard and stimulating fast, while munching skittles falling from rainbows whilst perched on a unicorn’s back, the best we could Hope(TM) for is $340B new revenue. Meh.

That leaves...50% across-the-board spending cuts.

Stock up & hunker down, this ain’t gonna be pretty.

[ctdonath2]

FairTax will backfire. Income Tax used to be a tiny simple form, mutated into the voluminous monster it is now. FairTax starts with the same simplicity, but with tentacles already into all businesses; it too will grow. Federal tax reform should be profoundly simple: every state owes $XB annually (adjusted for population), and writes one check a year; the IRS should be two guys working 2 days a year, depositing just 50 checks (plus territories). Let the states decide for themselves how that revenue is raised.

Term limits won’t happen. You’re expecting people to fire themselves.

You’re right, nothing will happen until those (or suitable equivalents) happen. They’re not going to happen. Hang on, bumpy ride.

[kcvl]

In Bartlett’s latest book, The New American Economy: The Failure of Reaganomics and a New Way Forward, he embraces Keynesian ideas, stating that while supply-side economics was appropriate for the 1970s and 1980s, supply side arguments do not fit contemporary conditions

During an interview on CNN on August 19, 2011 Bartlett stated that presidential candidate Rick Perry “is an idiot, and I don’t think anybody would disagree with that.” The comment was in reference to Perry’s earlier assertion that Federal Reserve Chairman Ben Bernanke’s actions would be “almost treasonous” if the Fed were to print more money before the election to stimulate the econonmy.

http://en.wikipedia.org/wiki/Bruce_Bartlett

[kcvl]

http://voices.washingtonpost.com/ezra-klein/bartlett_200.jpg

Historian Bruce Bartlett, a former domestic policy adviser to President Ronald Reagan, sat down with MSNBC’s Chris Matthews on Wednesday to discuss the national debt.

Bartlett said it was a myth that tax cuts are the key to prosperity, noting that Reagan raised the capital gains rate. He was also skeptical that Congress would be able to solve the current budget crisis.

“I think at this point, there’s nothing that can pass the House of Representatives,” he said.

“I think a good chunk of the Republican caucus is either stupid, crazy, ignorant or craven cowards, who are desperately afraid of the tea party people, and rightly so.”

http://www.rawstory.com/rawreplay/2011/07/bruce-bartlett-chunk-of-gop-either-stupid-crazy-ignorant-or-craven-cowards/

[ctdonath2]

total revenue as a percentage of G.D.P. are at their lowest level in 60 years

Oh?

Other sources show federal revenue stable between 15-20% GDP for most of that same period, never exceeding 20% and now about 18%.

Upshot is someone is pulling a fast one with that phrasing, being very selective of the points & period referred to. "Total revenue percentage of GDP is lowest in 60 years" overlooks how very much lower it was prior to 60 years ago, how it has stayed within a 10% range for over half a century, and has been rising toward 50% soon. What the author complains about as a problem is in fact a correction to a problem.

[ctdonath2]

Reagan raised the capital gains rate

IIRC, Reagan did so with the understanding Congress would cut spending. They didn't.

[jospehm20]

I agree. Governemnt needs to be cut at least 50%.

[cricket]

Thanks; and yes, great point(s). . .

No question, to the Reason-capable, how inauthentic that 'Utopia' must be, given what is required to be a part of it. The truth of it is, whether you are alive or dead. . .it is a burial ground.

(And of course, per manner of speaking; if the "Garden of Eden" had been perfect; or perhaps, just the pair who inhabited it, more - or less - perfect - 'humankind' would still be living in it.)

Bottom line:

The goal of socialism IS communism.

From the horse's mouth - Karl Marx

[cricket]

Thanks; and yes, great point(s). . .

No question, to the Reason-capable, how inauthentic that 'Utopia' must be, given what is required to be a part of it. The truth of it is, whether you are alive or dead. . .it is a burial ground.

(And of course, per manner of speaking; if the "Garden of Eden" had been perfect; or perhaps, just the pair who inhabited it, more - or less - perfect - 'humankind' would still be living in it.)

Bottom line:

The goal of socialism IS communism.

From the horse's mouth - Karl Marx

[cricket]

Thanks; and yes, great point(s). . .

No question, to the Reason-capable, how inauthentic that 'Utopia' must be, given what is required to be a part of it. The truth of it is, whether you are alive or dead. . .it is a burial ground.

(And of course, per manner of speaking; if the "Garden of Eden" had been perfect; or perhaps, just the pair who inhabited it, more - or less - perfect - 'humankind' would still be living in it.)

Bottom line:

The goal of socialism IS communism.

From the horse's mouth - Karl Marx

[newzjunkey]

Bartlette's been all over the map in his career. He started with Ron Paul as a staffer, moved to Kemp as a staffer, wrote about supply-side economics and so forth. He eventually made his way through various think tanks until being fired for his opposition to W's economic policies.

In 2006 he wrote a book saying W had betrayed the legacy of Reagan, bankrupted America and was a phony conservative.

In 2009 he became a born again Keynesian with his book "The New American Economy: The Failure of Reaganomics and a New Way Forward."

I find that title interesting considering his prior book's premise was Bush didn't follow supply-side Reaganomics and did things exactly opposite to what such policies would've been.

I reviewed a few articles by him and he definitely has anger towards Bush and his economic failings. He's also lashed out at conservatives for not holding Republicans to the same standard as Democrats.

Although he seems like he's calling for the TEA Party movement, I suspect he's not a fan of its economic push either.

He recently called Perry an "idiot" for his Bernanke comment.