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Why Americans Should Pay More Taxes: A Nobel Winner's View On Productive Economies
Wall Street Journal ^ | October 16, 2006 | Mark Whitehouse

Posted on 10/16/2006 6:30:33 AM PDT by Tolerance Sucks Rocks

NEW YORK -- When the new field of political economy emerged in the 18th century, it concerned itself largely with two questions: how societies get rich, and how they can justly divide that wealth. The thinking of this year's winner of the Nobel Memorial Prize in economics, Columbia University professor Edmund Phelps, hews close to that tradition, seeking the roots of prosperity and ways to maintain economic justice -- not only in today's world, but across generations.

In choosing Prof. Phelps, the Nobel committee focused on his work in the area of inflation and unemployment. But that isn't all Prof. Phelps has done over the years. He has delved into various questions relevant to policy makers, such as how economies become more productive, what kind of tax system creates the best incentives, and how much a society should save and invest.

In an interview at Columbia, Prof. Phelps discussed, among other things, why he thinks Americans should be paying higher taxes and doing more to increase the wages of the poor.

The Wall Street Journal: Many economists believe that the U.S. is acting irresponsibly by spending more than it produces and building up large debts. Your "golden rule" of capital accumulation states that each generation must save a certain amount so that future generations can enjoy the same standard of living. Should we be concerned?

Prof. Phelps: When you apply the golden rule, you have to look at the world economy. Certainly the world as a whole has saved enough. China, for example, should get good marks for doing a lot of saving. I would, however, have to give bad marks to the U.S. government, which has run persistent budget deficits at a time when we have to start climbing up the mountain of pension obligations that will come due...

(Excerpt) Read more at online.wsj.com ...


TOPICS: Business/Economy; Government; News/Current Events; Philosophy
KEYWORDS: economy; edmundphelps; poor; taxes; taxreform
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Would this qualify as a Barf Alert? I personally think we probably have a ways to go in lowering marginal tax rates before we hit peak revenue.
1 posted on 10/16/2006 6:30:34 AM PDT by Tolerance Sucks Rocks
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To: 3D-JOY; abner; Abundy; AGreatPer; alisasny; ALlRightAllTheTime; AlwaysFree; AnnaSASsyFR; ...

PING!

A professor's view on our "unsustainable" tax rates. He appears to avoid the problem of unnecessary spending by government.


2 posted on 10/16/2006 6:32:01 AM PDT by Tolerance Sucks Rocks (Hugo Chavez is the Devil! The podium still smells of sulfur...)
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To: Tolerance Sucks Rocks
Barf Alert.
Definitely.
3 posted on 10/16/2006 6:32:18 AM PDT by MaryFromMichigan
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To: Tolerance Sucks Rocks

"Columbia University" is an alert to approaching nausea.


4 posted on 10/16/2006 6:34:34 AM PDT by SteveMcKing
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To: MaryFromMichigan
Just another one of these.


5 posted on 10/16/2006 6:34:59 AM PDT by USS Alaska (Nuke the terrorist savages - In Honor of Standing Wolf)
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To: Tolerance Sucks Rocks
hews close to that tradition, seeking the roots of prosperity and ways to maintain economic justice

Ummm, Dude? It is not just to take money from people who earn it and give it to people who don't.

6 posted on 10/16/2006 6:35:03 AM PDT by null and void ("It is better to look ahead and prepare than to look back and regret."--Jackie Joyner-Kersee)
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To: Tolerance Sucks Rocks

Amazing how these socialists hate everything about America ... except our money

I say we go on strike and stop giving money


7 posted on 10/16/2006 6:35:27 AM PDT by Mo1 (SUPPORT FREE REPUBLIC - BECOME A MONTHLY DONOR)
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To: Tolerance Sucks Rocks
In an interview at Columbia, Prof. Phelps discussed, among other things, why he thinks Americans should be paying higher taxes and doing more to increase the wages of the poor.

If they are paid higher wages but then their taxes are increased, what is the point besides bigger government.

8 posted on 10/16/2006 6:35:42 AM PDT by Always Right
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To: Tolerance Sucks Rocks

When is the last time a society has taxed itself into prosperity?


9 posted on 10/16/2006 6:36:06 AM PDT by NRA1995 (Clinton "tried", 3000 died)
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To: Tolerance Sucks Rocks
If you want our economy to really grow, we need to stop spending US$250 billion per year trying to comply with our tax laws now. Saving that much money by going to a flat tax or fair tax plan would cause our economy to explode in economic growth.
10 posted on 10/16/2006 6:36:15 AM PDT by RayChuang88
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To: Tolerance Sucks Rocks

Much of government spending goes to support unproductive people.


11 posted on 10/16/2006 6:36:45 AM PDT by popdonnelly
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To: Tolerance Sucks Rocks

Cutting SPENDING seems like a better idea :)


12 posted on 10/16/2006 6:36:46 AM PDT by soccer_maniac (OPEC gets $620 billion/year - How much are you contributing ?)
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To: Tolerance Sucks Rocks

Taxes: an excuse-driven process to take money from the private sector. That money is returned to favored persons after the government deducts its 50% handling fee.

LM


13 posted on 10/16/2006 6:37:20 AM PDT by Loud Mime (Those who can make you believe absurdities can make you commit atrocities. - Voltaire)
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To: MaryFromMichigan

I pay 45% of every dollar I make to a taxing enity be it
federal, state, county, city, local, school board, social security, excise etc. I am considered upper middle class. That is enough taxes for me thank you. Cut the damn spending!


14 posted on 10/16/2006 6:37:45 AM PDT by cpdiii (Oil Field Trash and proud of it, Geologist, Pilot, Pharmacist, Iconoclast)
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To: Tolerance Sucks Rocks
China, for example, should get good marks for doing a lot of saving.

They save on things like research, innovation, fighting piracy, and oh... the whole "freedom" thing.

15 posted on 10/16/2006 6:37:53 AM PDT by SlowBoat407 (A living insult to islam since 1959)
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To: Tolerance Sucks Rocks

The very first sentence made me barf! 'dividing the wealth' ??






16 posted on 10/16/2006 6:38:38 AM PDT by penelopesire
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To: Tolerance Sucks Rocks

I agree. The 40-50% who pay little or no federal income tax should have to pay SOMETHING! < /sarcasm >


17 posted on 10/16/2006 6:38:48 AM PDT by JimRed ("Hey, hey, Teddy K., how many girls did you drown today?" (Hello, I'm a TAGLINE virus. Please help m)
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To: NRA1995

According to the libs, it happens every time a Dim is in power...


18 posted on 10/16/2006 6:38:48 AM PDT by ilovew (I love being a DoD intern...)
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To: Tolerance Sucks Rocks

He is falling into the now discredited trap. He raises poor wages, increases taxes, and then results in inflation.

crackpot from Noble.


19 posted on 10/16/2006 6:40:58 AM PDT by longtermmemmory (VOTE! http://www.senate.gov and http://www.house.gov)
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To: Mo1

It's always the "professors" with their noses buried in a book their entire lives who believe as this guy does. They really don't offer anything to society, imo, they just have the luxury of getting paid to sit around and indulge their curiosities, while everyone else has to work!


20 posted on 10/16/2006 6:41:23 AM PDT by The Worthless Miracle ("Better put some ice on that")
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