Reply To: Is a Double Dip Recession Looming?: Tips for Surviving the Next One

I think there is a pretty good chance that when the numbers are revised we’ll find that we did go back into recession already.

The “lower tax” issue may or may not be to protect rich people, but history shows that when they are lower the money moves more and the government collects more money in income taxes. Wealth is not taxed, income is. When money does not change hands it is not taxed at all no matter how high the rate is. Higher tax rates on the rich do not result in higher revenues for the government. …. neither does no income tax for people making little money, either.

Like them or not, we need rich people spending money to give us work and the government more revenue. Be careful what you wish for because it can hurt your livelihood. In the late 80’s they came up with a luxury tax on cars and boats over $75k. My state lost 26 boat manufacturers becuse of it … I think there were 2 left after all was said and done.

It all works fine if you believe that the only change is that the government gets more of a percent of the same amount of income. The problem is that behaviour changes and not only does the government not get the money, but the rest of us don’t have people spending money on our goods and services.

These are the same arguments made between the Carter and Reagan administrations and we all know how that turned out …….. or do we? How can anyone believe that the country has been shifting to the right?  Maybe to the right of where it was last year, but not more to the right than it was in the Clinton administration, … yes, I said the Clinton administration was way to the right of the current government.