Friday, November 12, 2010

Obama: Let the top cuts expire

Please let the tax cuts for above $250,000 expire. According to leading economists, such as Paul Krugman, these tax cuts do nothing positive for the economy, even now. On the other hand, increasing government spending would be very good for the economy. The best thing to do would be to create green jobs and even green industries to prepare for the future. If the private sector won't do this, because it is not seen as sufficiently profitable, the government must. Many have in fact argued that not only are the top tax cuts not helpful, they are positively harmful in accelerating the increasing inequality. Greater inequality leads to a slower economy and unequal political participation as well. Republicans have often argued that taxes should be cut on the wealthy because "it's their money." The have fallen back to this argument because there is no proof, and in fact disproof, for the claim that these tax cuts are good for the economy as a whole. But even that claim is totally false. It is not "their money" either technically or ethically. Ethically arge income and wealth is and cannot be a measure of individual contribution to society. Instead it is a measure of how much a wealthy person has been able to privatize for themselves the wealth created by social processes involving the work of many other people. And technically, "their money" is what is left over after taxes. I would even be willing to see all Bush tax cuts expire, even though I would pay considerably more tax. I believe government and the proper funding of government are very important. We pay much less taxes in the US than people do in other countries. Our economy was doing great under the Eisenhower tax rates.

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