Confusing but true. Letting rich people keep their money is capitalism taxing it and giving it to politically favored groups is not. You'll notice that this guy, Reich, can't get it through his head.
I contend that you don't have to tax rich people's income but their consumption. You only tax the money they spend because to make up income taxes on their income it comes out of our asses in higher prices, lack of services and innovation, and slower job growth.
My main point is that i agree with much of this post but taking from producers and giving to non producers is self defeating. Of course, if you disagree show me anytime in history that this has worked for anyone but a handful of supporters of this kind of government.
As to his point of deficits getting out of control, I guess trillion dollar or so a year aren't out of control yet but must be getting close. But the truth is that there is absolutely no proof that a fiat currency can not run unlimited deficits until we have full employment. Then taxes have to be raised and interest rates jacked up, as Fed Chairman Volker did in the 70's, so inflation does not destroy the currency.
I'm sure we all are in agreement that we are a long long way from that!
Robert Reich (The Answer Isn't Socialism; It's Capitalism that Better Spreads the Benefits of the Productivity Revolution)
I contend that you don't have to tax rich people's income but their consumption. You only tax the money they spend because to make up income taxes on their income it comes out of our asses in higher prices, lack of services and innovation, and slower job growth.
My main point is that i agree with much of this post but taking from producers and giving to non producers is self defeating. Of course, if you disagree show me anytime in history that this has worked for anyone but a handful of supporters of this kind of government.
As to his point of deficits getting out of control, I guess trillion dollar or so a year aren't out of control yet but must be getting close. But the truth is that there is absolutely no proof that a fiat currency can not run unlimited deficits until we have full employment. Then taxes have to be raised and interest rates jacked up, as Fed Chairman Volker did in the 70's, so inflation does not destroy the currency.
I'm sure we all are in agreement that we are a long long way from that!
Robert Reich (The Answer Isn't Socialism; It's Capitalism that Better Spreads the Benefits of the Productivity Revolution)
That’s why “supply-side” tax cuts for corporations and the wealthy are perverse. Corporations and the rich don’t need more tax cuts; they’re swimming in money as it is. The reason they don’t invest in additional productive capacity and hire more people is they don’t see a sufficient market for the added goods and services, which means an inadequate return on such investment.
But more Keynesian stimulus won’t help solve the more fundamental problem. Although added government spending has gone some way toward filling the gap in demand caused by consumers whose jobs and incomes are disappearing, it can’t be a permanent solution. Even if the wealthy paid their fair share of taxes, deficits would soon get out of control. Additional public investments in infrastructure and basic research and development can make the economy more productive – but more productivity doesn’t necessarily help if a growing portion of the population can’t absorb it.
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