DOA Deficit Commission

Most economists agree with this view on income taxes.  I agree with the view on social security.  Let higher income groups pay more social security taxes and plenty of taxes on their social security earning.  Above a certain income and wealth level people should not get social security.

…There is no — zero — evidence that income taxes at current rates are an important drag on growth.

Oh, and they’re talking about raising the retirement age, because people live longer — except that the people who really depend on Social Security, those in the bottom half of the distribution, aren’t living much longer. So you’re going to tell janitors to work until they’re 70 because lawyers are living longer than ever.

Still, I guess this is what it takes to get compromise, if by compromise you mean something the center-right and the hard right can agree on.

Update: It’s here. And it really is that bad. The idea that co-chairs of a commission whose charge is fiscal sustainability should take it upon themselves to (a) declare that federal revenue must not exceed 21 percent of GDP — that’s right, putting a cap on receipts and (b) call for reducing the top rate from 35 to 23 is just awesome.

via Economics and Politics – Paul Krugman Blog – NYTimes.com.

About Stephen E. McGaughey
International consultant in economic development programs and projects

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