B-S included a cap on taxes of 21 percent.  Doing what JD suggests, which
I've endorsed in the past, would break the cap.  As with other aspects of
their proposal, B-S grossly exceeded their mandate by pontificating on tax
policy.



On Wed, Dec 8, 2010 at 2:14 PM, Jim Devine <[email protected]> wrote:

> on how to get short-term stimulus and a longer-term movement toward
> budget balance:
>
> 1) making the federal income tax _more_ progressive (combined with
> short-term deficits to stimulate demand) would help with long-term
> budget balance, because the more GDP grows, the more people would be
> in the top tax brackets.
>
> 2) getting rid of the indexing of tax brackets would also help,
> because higher inflation rates (which usually goes along with more
> real GDP growth) would push more people into to the top tax brackets.
>
> -- these are very orthodox proposals. Why didn't the BS
> (Bowles-Simpson) commission talk about them?  [rhetorical question
> alert!]
>
> --
> Jim Devine / "The conventional view serves to protect us from the
> painful job of thinking."   - John Kenneth Galbraith
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