A Passion for Lower Taxes

I feel your passion but the economics on both sides are still wrong. I think that the political polarity fogs vision. Austerity will not get us out of this, only growth will do it. Our debt equals the GDP but is minuscule compared to total wealth (assets). Ask yourself what are the requirements needed to achieve growth like the Chinese (5-8%)? And how do we meet those requirements?

Lowering the interest rate to zero has had little effect. Lowering taxes to zero might not help much either and given the loss of the infrastructure upon which the economy is built zero taxes would be a disaster, so the question is How Much? With a high multiple in the GDP, lower taxes increases revenue, but our multiple is negative. The middle class is exhausted. Lowering taxes will therefore reduce revenue. (a relationship like elasticity in price and income)

I agree about excess entitlements, but like it or not labor (human resources) is a key factor of production. Without humanity there is no civilization and we have a problem there. Fifty five years of cold war plus Iraq and Afghanistan eroded ours.

I agree the Titanic seems unwieldy and gridlock is worse. If we keep fighting there is no way to steer a rational course. I vote for a measure of egalite, fraternity and cooperation. The economists know what you have to do. I submit that a wrong answer is better than continuing gridlock. The election is over. Let’s get on with it. Hire a vet. Buy American.

According to Forbes the top 1% of the US population control 43% of the wealth. In 2007 it was 34.6%, in 2010 - 37.1%. What is worse, our little depression -- 2000 to 2009 saw a loss of total household wealth from 65.9t down to 48.5t in 2009, a loss of 17.4 t mostly at the expense of the middle class. Note what Forbes has to say about just who is paying for the taxes on the debt and the unwritten un-budgeted federal deficit.

Forbes