Wednesday, July 23, 2008

Raising Taxes? It Only Sounds "Fair"

Income Taxes and the Rich: read the whole thing, although the charts tell the quick version of the story. Also, very few people remember what F. Scott Fitzgerald noted back in the Twenties: the rich are not like you and me. Faced with huge tax increases, the rich will maneuver their assets into non-taxable areas, leaving less revenue for the government than before. While in theory that may be good (since non-taxable assets include municipal bonds and school notes, things that we should theoretically want to support), the reality is that so long as government spending rises unabated (thank you, both major parties!), the government should do what it can to maximize revenue --which means lowering taxes and not raising them.

Of course, they could just cut spending....

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