Posted on 11/28/2006 5:55:04 PM PST by DredTennis
Time to Raise Taxes?
Robert Rubin, Treasury secretary under President Clinton, recently told the Washington Economic Club that "you cannot solve this nation's fiscal problems without increased revenue." Oh, and in case you think that Rubin, a noted deficit hawk, might have been talking about imaginative ways to accelerate the economy–thus raking in more tax revenue–that's not quite what he had in mind. "I think if you were to increase taxes right now, you would have probably about zero negative effect on the economy," Rubin said in response to a question from the high-powered audience. Rubin didn't specify which taxes he was talking about, such as income taxes or capital-gains taxes or dividend taxes.
But raising taxes at this moment would be interesting timing. Each day, more and more economists are cutting their growth forecasts for the economy. And today's weaker-than-expected durable-goods reports–new orders plunged 8.3 percent last month–sure gave more ammo to the economic bears out there. Then there's the sharp drop in the U.S. dollar. A continued decline could be inflationary–by raising prices for imported goods–forcing the Fed to raise interest rates. The beleaguered housing industry would surely love that. And then throw a tax hike into the mix. Certainly a fascinating fiscal policy experiment, one that smells a bit like stagflation, right?
(Excerpt) Read more at usnews.com ...
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Sure, get it over with, tax us 100%.
What part of "STFU" did they not understand the first time....
This is political. They want Bush to make the same mistake his father did. They'll pin the negative economic news on him.
And he will probably do it.
Instead of raising taxes, how about we cut spending instead? No surprise Rubin neglects to mention this option.
It would be a good idea for the Rinos and the Dems to raise taxes (and take the heat for doing so) but they better have enough votes to override Bush's veto.
If left alone, the economy will grow itself out of deficit, no thanks to idiots like Rubin.
If there is always a "time" to raise taxes, then there will NEVER be such a thing as fiscal responsibility or smaller government. Government will always expand to exceed the taxation accorded to it, and the people will continue to be oppressed more and more until democracy ultimately collapses under its own bloated weight.
There's a line on the 1040 where 'rats can send more in if they wish. Seems not too many want to lead the way. 'Rats want to tax others, not themselves. They have it completely backwards.
Why? Is the government taking in too much in tax receipts? If we raise taxes, tax revenues will drop.
Yeah, somehow it's not surprising that one of the consiglieri from the Clinton Mafia would want to wreck the economy so Hillary can get elected to "fix" it.
BAAAAWWWAAAAAAAAHHHHHHHHHHh......a Dem proposes raising taxes.......tell me it's not true!
Yes, there are lots of spending reductions that should be made before any increase in income taxes. Rubin is a super high-income liberal who never feels the impact of tax increases because he has such a very high income. So he's really unable to understand the impact of tax increases on the middle class.
Yup, but this time it's "read their lips". Perhaps we should appoint deaf people to the treasury so that they can "read our lips".
I think the multiplier is still around ten. A tax increase right now is totally unnecessary and is a really bad idea that could throw us into a recession.
NO! Our congress critters need to stop spending like a bunch of druken sailors and stop giving themselves raises, free healthcare and big fat pensions. If they had to live like the rest of us peasants they would probably think twice about raising taxes.
Huh?
There are two ways to increase revenue. The obvious way is by raising tax rates. That will increase revenue in the short term but will decrease the amount of revenue that will accrue to the government over the longer term. The other way is to reduce rates which decreases the amount of revenue over the very short term but increases the total revenue available to the government over the longer term as the money not immediately confiscated increases business activity which generates more revenue to the government.If power and control is the object then increasing rates is the indicated tactic. If increased total income to the government is the goal then reducing rates is indicated.
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