My Confusion

Here we are in the middle of an economic sh** storm. Bad stuff. And in the face of that the current administration is backing massive tax increases. Oh sure, I have heard the pitch, higher taxes are only for the “rich” guy. The plan will test once and for all the notion of “trickle down” because the President believes that taxing upper income earners will have no affect on anyone else. It will all be a surgical strike to take from the evil richies and give to those less fortunate. And we all know that the richies faced with less money will of course keep spending the same amount before having their pockets picked. Are there academics who actually have papers backing this crazy plan? This whole script plays out over an economy that everyone is calling a Depression. Ladies and gentlemen, the unintended consequences have been set in motion. Let’s see where the dice land.

10 thoughts on “My Confusion

  1. Mayor Bloomberg rejected the governors call for a higher tax on the rich. Why? Because Bloomberg is aware that the rich in NY (a small minority) pay for 60% of the budget.

    And New Jersey is just a 20 minute train ride away.

    The problem with socialism or ‘trickle up’ economics is that eventually you run out of other people’s money.

  2. I think everyone should pay the same as far as taxes go. I do wish they would close tax loopholes that some wealthy people use to get out of paying their fair share. I kind of wish they would go to a Fair/Flat Tax system.

  3. Some people don’t understand what the word ‘fair’ means. The Fair Tax is the only ‘fair’ way to tax people and treat them equally.

  4. Michael, i would recommend that you move to Switzerland. In this blessed country people have the right to vote on taxation issues. That is real democracy. Everywhere else in the world all people can do is vote a person into an office. In Switzerland they vote on real subjects.

  5. Michael,

    I’ve been following your site, your podcasts, and your books for quite some time, and I have noticed that I agree with everything you say, whether it is on trading or politics.

    It’s like your site is a tiny island of reason surrounded by a great sea of insanity! Please keep it up.


  6. How long before the next Senate/congress elections? These days it is not safe to give any one lunatic party charge of the asylum.

  7. david,

    Voting by referendum as they do in Switzerland was specifically frowned upon by the framers of the Constitution because they feared rule by Mobacracy. The right of the individual should be protected over the rights of a powerful/popular group. That’s why they chose a representative democracy.

    As for taxes from the way people talk you’d think we are being taxed to death, federal income taxes are lower than they have been in our lifetimes.

    Adam Smith in Wealth of Nations wrote that taxes are the price society must pay to maintain stability and that because the more money you have the more you stand to lose by anarchy (French Revolution) they must bear more of the responsibility to maintain stability. Unless you are willing to buy little army to keep looters out of your house.

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