Writing today in the Wall Street Journal, Arthur Laffer has written an excellent explanation of American tax policy history, and the differing effects of tax rate cuts on high and low income earners. This analysis should not be surprising coming from the architect of the famed Laffer Curve. Rich Lowry agrees, here.
The FDC concurs with Mr. Laffer, but would like to add that if you continue the trends that he points out we will eventually have a country where many people won't be able to brag, "I'm a tax-paying American citizen and yada, yada, yada." Why? Because if current trends continue, more and more people will NOT pay income taxes. You say, "I'm not rich. Fine with me. Let them pay. They can afford it." Eventually, when the number of taxpayers who don't pay any income taxes, reaches over 50%, then the lower 50% of income earners controls the whole game - with their votes. Next, the folks that are make barely more than the top earning no tax payers also vote for whoever or whatever will get them into this tax skate club, and so on, and so on, and so on. Pretty soon the rich are paying all the taxes. Then, Atlas shrugs, and the whole house of cards collapses. Back to the drawing board.
Showing posts with label Rich Lowry. Show all posts
Showing posts with label Rich Lowry. Show all posts
1/25/2008
1/15/2008
"...politicians have predicted nine of the last five recessions."
So says the National Review's editorial today.
And eventually the politicians will get it right. So, just in case they do get it right, something must be done, and since we are in the midst of a presidential primary...let the cash hand outs begin!
The National Review's Rich Lowry gets it right on these so-called "stimulus plans" to "jump-start the economy". The FDC loves that Lowry cited Milton Friedman's (one of our heroes) "permanent income hypothosis" that Lowry boils down to: "You can’t fool people into thinking that they are richer than they really are. "
Meanwhile, it should come as no surprise that New York Times columnist, Paul Krugman, praises the hand-outs. Krugman disregards the lessons he learned earning his undergraduate economics degree at Yale and his Ph.D. at MIT, to wallow in what Lowry calls the "the lowest common denominator of sophomoric economic policy".
And eventually the politicians will get it right. So, just in case they do get it right, something must be done, and since we are in the midst of a presidential primary...let the cash hand outs begin!
The National Review's Rich Lowry gets it right on these so-called "stimulus plans" to "jump-start the economy". The FDC loves that Lowry cited Milton Friedman's (one of our heroes) "permanent income hypothosis" that Lowry boils down to: "You can’t fool people into thinking that they are richer than they really are. "
Meanwhile, it should come as no surprise that New York Times columnist, Paul Krugman, praises the hand-outs. Krugman disregards the lessons he learned earning his undergraduate economics degree at Yale and his Ph.D. at MIT, to wallow in what Lowry calls the "the lowest common denominator of sophomoric economic policy".
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