Tuesday, February 15, 2011

Robert Reich utters the taboo words

“Tax the rich.”  More steeply progressive taxation is the only way to rebalance demand and get the economy going again in the near term.  See also George Washington’s excellent post on inequality here.

Via:  http://www.huffingtonpost.com/robert-reich/the-obama-budget-and-why-_b_822920.html 

[…] The best way to revive the economy is not to cut the federal deficit right now. It's to put more money into the pockets of average working families. Not until they start spending again big time will companies begin to hire again big time.

Don't cut the government services they rely on -- college loans, home heating oil, community services, and the rest. State and local budget cuts are already causing enough pain.

The most direct way to get more money into their pockets is to expand the Earned Income Tax Credit (a wage subsidy) all the way up through people earning $50,000, and reduce their income taxes to zero. Taxes on incomes between $50,000 and $90,000 should be cut to 10 percent; between $90,000 and $150,000 to 20 percent; between $150,000 and $250,000 to 30 percent.

And exempt the first $20,000 of income from payroll taxes.

Make up the revenues by increasing taxes on incomes between $250,000 to $500,000 to 40 percent; between $500,000 and $5 million, to 50 percent; between $5 million and $15 million, to 60 percent; and anything over $15 million, to 70 percent.

And raise the ceiling on the portion of income subject to payroll taxes to $500,000.

It's called progressive taxation. […]

The kleptocratic rich are drooling, thinking about how they’ll be able to hire servants cheaply in the near future, once Neo-Feudalism is securely in place.  “Yes, m’um.  No, m’um.  Is there anything else, M’um?”

Paul Farrell has an excellent rant on the Chairsatan Bernank’s tenure:



  1. I've said this here before but I'll say it again...taxing those trying to get rich won't be productive. The damage has already been done - we need to claw back those who benefited from the credit creation of the past 3 decades. That means a wealth tax...not higher income tax. Why tax the med student with $300k of loans and a $300k income the same as the Goldman banker with a net worth of $10m and a $300k income?

  2. I don't have a problem with that. Gotta start somewhere.