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Yes, We Can Afford Higher Taxes—Here's Why
The Atlantic ^ | 10-24-2012 | James Kwak

Posted on 10/25/2012 6:34:29 AM PDT by Sir Napsalot

....

The huge tax cuts passed under Presidents Reagan and Bush II (surrounding smaller tax increases under Bush I and Clinton), in the short term, contributed to the largest budget deficits in peacetime U.S. history. In the long term, they undermined the federal government's ability to pay for the social insurance programs that make up the largest part of the federal budget: Social Security, Medicare, and Medicaid. But the most remarkable victory of the conservative revolution has been taking tax increases off the policy table, to the point where even letting tax cuts for the very rich expire as scheduled is a non-starter in Washington. Instead, Mitt Romney and Paul Ryan can claim with a straight face that the solution to our long-term national debt problem is to lower taxes.

....

It doesn't have to be this way. We can continue to pay for our modest social insurance programs, so people who are laid off have time to look for good jobs, poor people can get health care, and the elderly can retire with a minimum of security. It's just a matter of choice.

But, the Serious People and the self-appointed centrists say, that would require raising taxes to unprecedented levels (as a share of the economy), which is Bad Bad Bad, because then people wouldn't work as hard.

There are at least two major problems with this argument. ....

In other words, there's nothing wrong with a society and an economy where we vote ourselves increasing levels of security and we pay for it with higher tax rates. Rising productivity means that our real after-tax wages will still go up and the incentive to work will remain at least as strong. It's a choice we can make. It's just not a choice we have in this election.

(Excerpt) Read more at theatlantic.com ...


TOPICS: Chit/Chat
KEYWORDS: incometax; obamacare; obamarecession; obamataxhikes
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It is as if James Kwak, an associate professor at the University of Connecticut School of Law, refuse to look at the most recent data. That welfare programs top 1 Trillion in cost&operation, and calling that 'modest' social programs.

And sure enough, The Atlantic is pushing another article "Happiness Is Equality". Get it? It is spelled out in The Constitution, that the prusuit of happiness means 'equality' for everybody!

1 posted on 10/25/2012 6:34:30 AM PDT by Sir Napsalot
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To: Sir Napsalot

SPENDING causes deficits, not tax cuts.


2 posted on 10/25/2012 6:38:14 AM PDT by Jack of all Trades (Hold your face to the light, even though for the moment you do not see.)
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To: Sir Napsalot

UGGH!

Higher Taxes are not the issue.

GOVERNMENT OUT OF CONTROL SPENDING IS!! i.e. entitlement programs.


3 posted on 10/25/2012 6:38:31 AM PDT by BookaT
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To: Sir Napsalot

Kwak ... Your’e a quack.


4 posted on 10/25/2012 6:38:49 AM PDT by dartuser ("If you are ... what you were ... then you're not.")
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To: Sir Napsalot

So let’s levy a stiff tax rate of at least 70% on all Socialist Democrats so they can be happy. Sounds good to me.


5 posted on 10/25/2012 6:39:01 AM PDT by txrefugee
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To: Sir Napsalot

Remember, with Leftists, Government and its needs ALWAYS come first.


6 posted on 10/25/2012 6:43:18 AM PDT by PGR88
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To: Sir Napsalot
Rising productivity means that our real after-tax wages will still go up

How exactly do you increase productivity when you're discouraging people from working harder?
7 posted on 10/25/2012 6:46:27 AM PDT by andyk (I have sworn...eternal hostility against every form of tyranny over the mind of man.)
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To: Sir Napsalot
In the long term, they undermined the federal government's ability to pay for the social insurance programs that make up the largest part of the federal budget: Social Security, Medicare, and Medicaid.

The tax rate for Social Security was raised from 5.35% to 6.2% for each of employers and employees and the Medicare tax was raised from 1.3% to 1.45% (again x2) under Reagan and the first year of GHW Bush. Explain again how that "undermined" the government's ability to pay for Social Security and Medicare? The problem was that Congress had the blowtorch out cutting the back out of the "lockbox" to spend that cash immediately. Spending, not taxes, is the problem.

http://www.ssa.gov/oact/progdata/taxRates.html

8 posted on 10/25/2012 6:47:09 AM PDT by KarlInOhio (Big Bird is a brood parasite: laid in our nest 43 years ago and we are still feeding him.)
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To: Sir Napsalot

James is a Kwak!


9 posted on 10/25/2012 6:47:28 AM PDT by MichiganCheese (It's now or never!)
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To: Sir Napsalot

Wonder if this kauk volunteers to pay more taxes. He, and everyone who wants to pay more taxes, can.


10 posted on 10/25/2012 6:48:21 AM PDT by Leep (Billybob 0bama:I sure would like to remain dic-tater..mmm hmmm)
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To: Sir Napsalot

Anyone that can say “modest social insurance programs” should be instantly put in a mental institution.


11 posted on 10/25/2012 6:48:35 AM PDT by LivingNet
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To: Sir Napsalot

The time has come for Red State America to separate from Blue State America (and we really need to switch colors for this to work). The two groups cannot co-exist in the same economy. Perhaps the next great American experient is to try to find a way for two nations to exist on the same land.

Honest, productive, God-fearing people have more in common with a rock that we do with these Leftists.


12 posted on 10/25/2012 6:54:24 AM PDT by Bryanw92 (Sic semper tyrannis)
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To: Sir Napsalot

The basic fact is :”THE MORE WE GIVE THE GOVERNMENT< THE MORE THEY SPEND.”

Not one American would be against higher taxes if our Government stopped pissing it away.

Why are we flying this Wouldbe King all around our nation every day, why is he living like a royal while we cannot afford gas for our car.For Christ’s sake lets have the man at least act like he cares.

If they tax us more , they will spend more.

First control spending , then make an effort towards paying the debt. We cannot survive with everyone either working for the Government or on government subsidies.We need Private Industry, we need a population that wants a job and not a hand out.


13 posted on 10/25/2012 6:59:27 AM PDT by Venturer
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To: Sir Napsalot

No need to read the article.....it’s from the Atlantic magazine. The east coast dumps their sewage into the Atlantic.


14 posted on 10/25/2012 6:59:59 AM PDT by blueunicorn6 ("A crack shot and a good dancer")
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To: Sir Napsalot

So, taxes are supposed to pay for Social Security? Then what is it they take out of my paycheck?


15 posted on 10/25/2012 6:59:59 AM PDT by Lx (Do you like it, do you like it. Scott? I call it Mr. and Mrs. Tennerman chili.)
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To: Sir Napsalot

The Reagan tax cuts doubled revenue to the Treasury. that’s documented. Unfortunately, Reagan cut the deal with Tip O’Neill to put entiltments on an automatic escalator. Revenue doubled, but spending continues to soar.

SPENDING IS THE PROBLEM, NOT LOW TAX RATES.


16 posted on 10/25/2012 7:01:53 AM PDT by SC_Pete
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To: Sir Napsalot
What infuriates me about all this talk about taxation is that people don't realize how much of the top 1% wage earners are actually earning from businesses that are claimed on personal tax forms. Even if you ignore that portion of the top 1%, most of the remainder are highly-sought-after individuals who can “name their price” when it comes to earnings.

As a consequence, when the tax rate goes up, where does the tax money come from? If a business is taxed at a higher rate, where does the tax come from? Usually, from the consumers of the product. If not by a direct increase in cost of the product, then through some other means to increase the cost of the product (smaller packaging sold at the same price, etc).

Businesses have other alternatives ... reduction in research, reduction in number of employees, etc, but at the bottom line, whatever choice the business makes, the cost of the decision is typically born by the consumer of the product or the middle- and lower-class workers who will not get the benefit of working for the company or the suppliers of that company.

As for the “highly-sought-after” person who is in the top 1% of wage earners, do you think they are going to ultimately take a smaller wage home? No, they are going to demand a higher wage to offset the cost of the increased taxes. Where is this extra cost going to come from? From the consumer of the highly-sought-after person's product.

For example, an actor who is able to command millions of dollars per gig will cover his extra expenses by increasing his per-gig cost. The companies that hire him will just pass the cost on to the consumer through higher ticket prices at the theater.

Same with lawyers, doctors, sports figures, and almost anyone in the top 1%. The cost of the taxes will ultimately be passed down to the middle- and lower-class consumers in one way or another.

17 posted on 10/25/2012 7:09:58 AM PDT by Stegall Tx (Living off your tax dollars can be kinda fun, but not terribly profitable.)
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To: Sir Napsalot

Professor Quack is the example of someone who decides he likes a certain conclusion and twists the facts to support his assertions. The reason the deficits are so high? BECAUSE WE SPEND TOO D... MUCH!!!! That’s the reason...not because taxes are too low.


18 posted on 10/25/2012 7:12:58 AM PDT by driftless2
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To: Sir Napsalot

No society has ever taxed itself into prosperity.


19 posted on 10/25/2012 7:14:05 AM PDT by NRA1995 (I'll cling to my religion, cigars and guns till they're pried from my cold dead fingers!)
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To: Sir Napsalot

Federal income taxes

state income taxes

property taxes

sales taxes

gasoline taxes

license plate taxes

and approx. 52 other taxes

just over half of what I make goes to the government in taxes and fees

HALF...

screw you, Mr. Kwak, and everybody that thinks like you


20 posted on 10/25/2012 7:16:55 AM PDT by joe fonebone (The clueless... they walk among us, and they vote...)
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