About Raising Taxes as the ‘Solution’ to the Fiscal Cliff…
Raising taxes is the “solution.” Too bad incomes are declining. What will raising taxes do to household savings, spending and the economy?
We all know cutting Federal spending is politically impossible, so that leaves raising taxes as the only “solution” to the “fiscal cliff.”
Since most income tax revenues flow from household income, let’s look at some charts of the workforce and household income:
As a percentage of the population, the workforce has contracted to levels of the late 1970s.
As a percentage of national income, labor’s share is in a free-fall: