Just another example of the Liberal Elite re-writing history.
Hasn’t Krugman just become a full time crank at this stage? I swear he just cuts and pastes his rants in the NYT.
Raising taxes may result in less investment and more money spent trying to shelter income. I say may because it depends on the amount of the tax increase.
Back to the issue at hand, there are so many special interests that influenced every iteration of the tax code that true reform is next to impossible. Eliminate most of the deductions so that tax payers know exactly what they will be paying (even if it is higher) and people can comport their behaviour appropriately.
That would only be a problem if there was a shortage of capital. Corporations are awash in cash they won’t invest in jobs or new capacity until demand picks up.
Peter was a fisherman, and people have to eat. Paul was a tentmaker, and could see his sector’s income gradually drop with improvements in material technology. Who feeds the tentmaker’s children? Or shall they go into finance and sell swindles for a living?
Sure it does. Paul is a job creator, and everyone knows that we shouldn’t tax the job creators. Give Paul a tax cut (and raise Peter’s taxes to pick up the slack), and everyone will be better off, including Peter. Trust me.
Holy shit - people still trot out the Laffer curve? Fuck but stupid is hard to cure.