September 25, 2010

Balderdash! Increase the taxes on the wealthy

Robert J. Samuelson in the Washington Post says: "Raising taxes in a weak economy doesn't make sense. Just consider this astonishing fact: These affluent households represent almost a quarter of all consumer spending, according to Zandi. Increasing their taxes, he estimates, would cost 770,000 jobs by mid-2012. Richard Curtin, director of the University of Michigan's Survey of Consumers, says his data suggest that uncertainty about the extension of the Bush tax cuts has already caused affluent buyers to cut their spending."

I say, balderdash! The question is not how many jobs would be lost because of increasing the taxes on the affluent. The question is better stated by asking how many net jobs would be created by using the revenue generated by such an increase to invest in projects such as repairing infrastructure, and restocking the military by replacing much of the equipment destroyed or damaged by the two wars we are currently fighting. The projects worked on do not need to be meaningless. There is plenty of things in this country that needs to be fixed. Let's fix it.

Many of the unemployed, and underemployed,  are highly educated. Put them to work as teachers' aids to help raise the level of education in this country. Can you think of a better investment for the future of this country. We talk-the talk about the importance of education; we now have a chance to do something about it.

No one can convince me that the middle/working class would not spend a larger share of this tax increase than the wealthy if they are able to keep it. The working class has less disposable income. The "non-affluent" households account for 75% of consumer spending. This 75% of our population, as a result of the increase in spending afforded by an increase in taxes to the affluent, will stimulate the economy far more than the remaining 25% who have their necessities already covered.

By implementing a tax increase for the wealthy, the "trickle up" theory of economics will have a chance to work. As the working and middle class begin to assist in the stimulation of the economy, more demand for the goods and services produced by companies controlled by the upper class will be created. This in turn will increase the wealth of this class of citizens in our country. Everybody wins.


  



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