Austan Goolsbee, chairman of President Obama's Council of Economic Advisers said today while speaking at the Council on Foreign Relations in New York that if the debt ceiling isn’t raised, the U.S. would be forced to default either on government bonds, Social Security, Medicare or the military.
Part of his solution is a "simpler" corporate tax system that has lower rates, but also a broader base. A broader base sounds to me as if he wants to go after Mom and Pop corporations.
Be careful, we don't need a simpler tax system, an overhauled tax system or a fundamentally fairer tax system, all of which are cover for increasing taxes. Keep the current structure and reduce rates from here.
When Goolsbee says a "simpler" corporate tax system helps solve the debt crisis, he's not talking supply-side economic theory, he 's talking higher taxes.
Austan Goolsbee? That's his real name??
ReplyDeleteMove over Ellsworth Toohey!
Robert, I don't know that I've seen you opine on the Fair Tax or the fair tax vs flat tax. I have my own opinions, but have come to appreciate your knowledge and understanding of the relationship or finance and politics and would like to hear what you think. Thanks.
ReplyDeleteYou have two choices at this time. You can choose higher taxes, along with deep spending cuts to achieve a balanced budget, and stop the debt from growing, saving the nation from bankruptcy. OR, you can choose tax cuts which will increase the deficit and result in the US going bankrupt, and the thugs down the street, who number in the tens of millions, will kill you and your family and take any of your possessions that they want.
ReplyDeleteYour move.
There's a third option (many more than three actually) of eliminating 90% of government spending while simultaneously cutting taxes at all levels and eliminating regulations which act as barriers to entry until such time that it is possible to phase out government entirely. This is least likely, but it would be the best option in both the short run and the long run.
ReplyDeleteAgree with 3rd post down from the top, of May 20, 2011 2:55 AM.
ReplyDeleteIt will require tax increases plus spending cuts. A proposal to cut 90% of spending is laughable and IS NOT an option. Defense, while needing deep cuts, currently is about 20% of all federal gooberming spending.
You can keep talking your 90% pipe dream cuts all you want - by doing so, you will accomplish ABSOLUTELY NOTHING and the nation will go bankrupt.