That's 21 percent of GDP.

On Wed, Dec 8, 2010 at 2:21 PM, Max Sawicky <[email protected]> wrote:

> 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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>
>
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