How to raise taxes | Arkansas Blog

Monday, November 28, 2011

How to raise taxes

Posted By on Mon, Nov 28, 2011 at 6:37 AM

Paul Krugman offers two modest proposals on taming the budget with some strategic tax increases:

* An increased bite on the super wealthy, a range he defines as making more than $2 million a year. He'd take it to pre-1980 rates, sufficient to produce $1 trillion over 10 years, while raising eligibility age for Medicare to 67 would save the government an eighth that amount. (And save nothing for the country as a whole because it would drive people into more expensive private insurance or force huge amounts of unpaid charity care for emergencies.)

* A small fee on financial transactions.

Because there are so many transactions, such a fee could yield several hundred billion dollars in revenue over the next decade. Again, this compares favorably with the savings from many of the harsh spending cuts being proposed in the name of fiscal responsibility.

But wouldn’t such a tax hurt economic growth? As I said, the evidence suggests not — if anything, it suggests that to the extent that taxing financial transactions reduces the volume of wheeling and dealing, that would be a good thing.

This all DOA in the Republican House, at a minimum. There, the focus is all on ending government pensions, ending Medicare and ending Social Security. Oh, and don't forget more tax breaks for the so-called "job creators" — many of them actually nothing but wealthy coupon clippers enjoying tiny tax burdens on capital gains and dividends flowing from inherited wealth.

Tags: , ,

From the ArkTimes store

Favorite

Comments (12)

Showing 1-12 of 12

Add a comment

 
Subscribe to this thread:
Showing 1-12 of 12

Add a comment

More by Max Brantley

  • North Little Rock mayor shows downtown plaza plan

    North Little Rock Mayor Joe Smith is presenting a plan to the City Council tonight for a downtown plaza meant to augment planned private developments and further enhanced downtown as a destination.
    • Sep 25, 2017
  • Attorney general asks for continued secrecy on execution drugs

    As expected, Attorney General Leslie Rutledge has asked the Arknasas Supreme Court for an "emergency stay" of a lower court ruling that the Correction Department must produce labels from one of the drugs used in executions.
    • Sep 25, 2017
  • Groups seek end to commercial collection of wild turtles

    Several environmental organizations to end commercial turtle collection in Arkansas.The harvests (more than 126,000 turtles from 2014 to 2016) are not sustainable and that, in turn, is damaging to ecosystems, the groups said.
    • Sep 25, 2017
  • More »

Readers also liked…

  • Super Bowl line

    Over to you.
    • Feb 7, 2016
  • In Little Rock, Marco Rubio sells American exceptionalism

    This is Rubio's axiomatic answer to Donald Trump's insistence that he and he alone will Make America Great Again: America is the greatest, always has been.
    • Feb 22, 2016
  • Auditor Lea caught not telling the truth

    State Auditor Andrea Lea, who began her tenure in statewide office with a degree of competence unseen in some other Republican counterparts (think Treasurer Dennis Milligan particularly), is becoming more deeply mired in a political scandal.
    • Mar 4, 2016

Most Shared

  • Bad health care bill, again

    Wait! Postpone tax reform and everything else for a while longer because the Senate is going to try to repeal and replace the Affordable Care Act one more time before September ends and while it can do it with the votes of only 50 senators.
  • Sex on campus

    Look, the Great Campus Rape Crisis was mainly hype all along. What Vice President Joe Biden described as an epidemic of sexual violence sweeping American college campuses in 2011 was vastly overstated.
  • The inadequate legacy of Brown

    LRSD continues to abdicate its responsibility to educate poor black students.

Most Viewed

Most Recent Comments

Blogroll

 

© 2017 Arkansas Times | 201 East Markham, Suite 200, Little Rock, AR 72201
Powered by Foundation