Fiscal restraint in the US will not be enough to reduce the growing deficit (although, as with all things about the future, emergent influences may we exacerbate or ameliorate the deficit in unforeseen ways). However, on a practical note, revenue is one part of the dual pronged attack on deficits, the other, is reduced spending. Perhaps the most important information in this April 18, 2011 discussion on Warren Olney’s To the Point are the observations from David K. Johnston of Syracuse University College of Law and Whitman School of Management. As he points out, we have a growing disparity between rich and poor that has only grown as we more actively embraced Milton Friedman’s theory that low taxes drive investment. Johnston argues that the luxury bubble has been created by the rich seeking tax shelters and financial instruments that direct wealth away from tangible, productive investments. (Median wage stuck at 26,000 in the last decade. Bottom 90% of American’s have increased their income by only 1% over the last 28 years)
Also a discussion on an interesting University of Maryland’s Center on Policy Attitudes study from that illustrates American willingness to work through all the variables in the deficit equation. Perhaps it is time for the representatives in the government to listen to their constituencies with more creativity (i.e., run studies like this that they can then apply).
Listen to the Main Topic here:
Today’s Taxes and Tomorrow’s Financial Problems
On tax day, nobody wants to talk about paying more but, despite the Republicans’ 30-year line in the sand, that may be unavoidable, and it won’t be just the richest Americans. The national debt is too big for them to do it alone. New polls surprisingly show that Democrats, Independents and Republicans are so worried about the national debt they might be willing to see an increase in taxes. Most important of all, they want everybody to pay a fair share.
Guests:
- David Cay Johnston: Tax.com
- Steven Kull: University of Maryland’s Center on Policy Attitudes
- Carl Cannon: Real Clear Politics
- Stephen Moore: Wall Street Journal
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