OXYMORON CONFLICT: Raising taxes and lowering taxes is bad economics, yet raising taxes and lowering taxes is good economics.
OXYMORON CONFLICT: Raising taxes and lowering taxes is bad economics, yet raising taxes and lowering taxes is good economics.
Raising taxes on the middle-class and lowering taxes on the top 2% would be very poor economics. (See below)
Raising taxes on the top 2% and lowering taxes on the middle-class would be excellent economics. (See below)
The economics of a given venue depends upon the demand wherewithal and energy of that venue. If the demand wherewithal and energy is increased, the economics of that venue should be increased.
Congress controls the logistics of our income taxes. The adjustments of the logistics should affect the demand and energy wherewithal. There are five scenario options:
1. No change of taxation policies.
2. Lower income taxes on everyone.
3. Raise income taxes on everyone.
4. Raise taxes on the middle-class and lower taxes on the top 2%.
5. Raise taxes on the top 2% and lower taxes on the middle-class.
The probable results of these options:
1. No effect.
2. Should materially increase demand, increase employment, but should have a net adverse effect upon the budget.
3. Should materially decrease demand, decrease employment, and have a questionable effect upon the budget.
4. Should materially decrease demand, decrease employment, and have a negative effect upon the budget.
5. Should materially increase demand, increase employment, and have a very positive effect upon the budget.
The most beneficial option appears to be #5.
The first legislative action to take should be to reverse the Bush tax error of 2001, based upon questionable (at best) testimony by Alan Greenspan on January 25, 2001, before the Senate’s Committee on the Budget.
mz