How about making increased revenue part of the remedy? And not just a return to Clinton-era tax rates. Full Story »
Posted by Manfred Ostrowski - via Paul Krugman, Dan Kennedy, New York Times (Most Emailed), Memeorandum, New York Times (Opinion), Real Clear Politics
I’ve extrapolated that number using Congressional Budget Office projections, and what I get for the next decade is that high-income taxation could shave more than $1 trillion off the deficit. —- But wouldn’t such a tax hurt economic growth? As I said, the evidence suggests not — if anything, it suggests that to the extent that taxing financial transactions reduces the volume of wheeling and dealing, that would be a good thing.
Dr. Krugman points out that there are some areas that can and should be taxed at even higher rates then the ones being suggested.