I left the following:
Tom Usher Says:
January 10th, 2009 at 1:48 am
If you cut taxes on the rich, they do not necessarily invest it wisely in things that result in a sustainable return. Also, they often do not share the return by plowing it back into their businesses but rather hoard it paying capital-gains taxes only when required and/or spend it on personal high living. Meanwhile, the poor and lower-middle class and middle class do not do better in constant-dollar terms (adjusted for inflation). Of course, the method of calculating inflation has been altered to make it appear to be lower than it has been.
If you raise taxes on the super rich, the 19.5% [I been given to understand from the capitalists that generally speaking, 19.5% represents a static percentage of GDP constituting general revenue from the income tax regardless of tax rates on the rich] can remain while the percentage of tax paid by the poorer people can go down or disappear entirely, thereby allowing them to save or spend more into the economy in the form of demand. The rich may not then keep more for themselves but so what? They won't be poor, not even close to it. They will be surrounded by more people able to live decently thereby making the quality of life for those with higher incomes all the better without having to pay to be insulated behind high walls with hyper-security.
The economy was not small in the early 1950's when the tax rate was at its highest. In fact, the U.S. economy was about 50% of the world's economy. Granted it was just after WWII and the other nations had sustained war damage. The truth though is that one-income families in the 1950's were doing better in real terms (equity and purchasing power) than two-income families have been doing for a long time, ever since the tax rates were so dramatically lowered with the promise of all ships rising with the tide for the rich. Trickle down didn't work though. The Laffer Curve turned out to be a laugh, as predicted.
There are other costs involved in the equation as well, such as the costs of environmental damage and other costs of no regulation and insufficient regulation. Just using GDP doesn't take those into consideration.
One must look at the overall quality of life across the entire society. Some of the social democratic nations have had much better statistical results in that regard than has the United States for instance. Infant mortality, literacy, longevity, healthcare, crime, vacation time, and many other factors must be weighed as well. Total quality of life for all is the proper gauge, not just what will afford the most growth of any kind (including detrimental to the environment and human health) and tax revenue.
Let's not forget that it was military Keynesianism that finished pulling the U.S. out of the Great Depression and military spending isn't as productive as infrastructure such as with the case of the U.S. super highway system built up under Republican President Eisenhower. Those super highways were and are socialist highways (at least the ones that haven't been foolishly privatized into toll roads).
There is absolutely no truth in the notion that government cannot plan but only react. That idea is just false propaganda pumped out by those who stand to make the most selfish gain at the expense of everyone else. The ultra-rich pay people to conjure up public-relations sound bites to drill into the minds of people to duped them and make them or keep them as minions and servants and who don't hear the alternatives, because the ultra-rich control the mainstream media and actually own the government that was supposed to belong to all the people. That's why the losses on Wall Street were socialized for those hand picked by Henry Paulson but profits were not.
If you want to go far in cleaning up the mess, get rid of the Federal Reserve and switch to United States Notes. Get rid of the usurers. Adjust the volume of notes to exactly match the needs of productivity.
If you do this, it won't be inflationary or deflationary. You don't need any metals backing it up. You don't need to issue any bonds, because you don't need to borrow from anyone. Use the notes to pay off the National Debt, and be done with it.
Blessings to all, not just the greedy.
Beyond this of course lies the Christian Commons Project where all money (unrighteous mammon) would be translated into the moneyless society.