Friday, December 28, 2012
For Paul Krugman: Please analyze, if you can, the effect of the Bush era tax cuts on creating jobs in America. My notion is that we gave the super rich a nice piece of lagniappe, which largess they then took and actually did create jobs -- in China. So, if it is possible to track differential rates in overseas investments by America's wealthiest as a result of the Bush era tax cuts, I believe the study would be extraordinarily entertaining to most of your readers. It is now possible, I think, to describe the Republican party as being in thrall to Currency Cranks, Abortion-Nots, Teahadi partisans, whose elected members are in thrall to big money contributors like Sheldon Adelson. Lundberg's book The Rich and the Super Rich could be updated by a bright graduate student to cover the last 30 years of criminally silly tax cuts for the wealthiest Americans -- and to track the lobbying money that supported ramming this down the throats of ordinary Americans. It is possible to speculate that higher tax rates on the wealthiest Americans would (a) balance the government's books and (b) spur the kind innovation in domestic industries that brings augmented profit. I'd be in favor of a direct tax on shares similar to the real estate tax -- if it would do any good. Corporations not registered in this country, and whose shares aren't traded here could be taxed at a higher rate to encourage them. My very best to Sarah Murphy, and best wishes for the coming year.