Monday, November 28, 2011

Raising Taxes is not Evil, It's Economics

Paul Krugman tackles one of the biggest lies floating around the conservative universe: that taxes on the wealthy will not result in a meaningful amount of money. This, coupled with the mantra of "job creators" has essentially caused a line in the sand to be drawn, and the conservatives to attack the idea from every direction with their baseless opinions.

Then, Krugman points out another tax that we don't even have that could be levied to help raise money: a tax on all financial transactions. While this might sound like it's taking money from the poor, it would receive that vast majority of it's money from the millions of transactions made on Wall St. each and every day by mindless computers that are buying and selling at the rate of hundreds a second. Krugman points out that this would raise a significant amount of money, even if you compare to the amount saved from proposed spending cuts.

Krugman concludes by making a point that is so full of common sense that it's a shame more people don't seem to agree: that taxation alone is not the answer, just like cutting alone is not the answer, and that any solution that is worth consideration must have both in it. Krugman's ideas are not groundbreaking, they won't spell the end of America, and they're not extremely liberal or out-of-touch. The idea that we should tax the super-wealthy more is decidedly progressive, but it also makes fiscal sense. Taxing financial transactions is done in many other countries, and it could generate billions in tax revenue, helping to balance out the government's costs without harmful cuts to programs real people depend on.

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