Sunday, September 12, 2010

Gloomy Economic Outlook Continues - Barrons.com

ROOMIE POLICIES: Gloomy Economic Outlook Continues - Barrons.com: "- Sent using Google Toolbar"

How can one not feel a bit gloomy when the Obama Administration's economic policies are so 'roomie'?

A quick example comes to mind with respect to the idea of moving the tax rates up on the 'rich'.

If the rich started to pay a larger and larger share of all personal income taxes when their rates were cut by Mr. Bush (from roughly 42% to 50%+), then is boggles the mind to think these numbers won't also work in reverse.

Thus, by letting the rates go back up, the most basic math would say that the rich will soon be contributing 42% of what will be a reduced tax collection pie.

It might be possible to argue this would be in the vein of 'unexpected consequences' - but the old saw of 'regression to the mean' would argue otherwise. In other words - HIGHLY EXPECTED CONSEQUENCES!

Why are reporters missing this?

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