Raise Taxes to Spur Economy

That's what a column in the New York Times suggests:

But if they (Bush tax cuts) were repealed in a year, the Bush tax cuts could spur a burst of economic activity in 2008. If people knew that their tax rates were going up next year, they’d work to make sure that more of their income is taxed at this year’s lower rates. Investors would likewise have a giant incentive to cash out their capital gains now to avoid paying higher taxes later. In 1986, stock sales doubled as taxpayers rushed to avoid the capital gains tax rate increase scheduled for 1987. If people pour their stock gains into yachts and fast cars, that’s pure fiscal stimulus.

So, isn't this an admission that lower taxes spur the economy? What happens in 2009?

http://www.nytimes.com/2008/01/23/opinion/23burman.html

Raising taxes to spur the economy is like bleeding an anemic person to improve their circulation.

When you sit and listen to the politicians and news media, you have to wonder if they are ont he same planet as you are. Right now everyone is whooping up and economic stimilus package. ITs full of all sorts of goodies, for the folks that don't produce or create jobs and doesn't have a single thing for the people that achieve and reinvest. That's because the general public is ignorant when it comes to economics. They think handouts will do the trick, when it will do absolutely nothing other that protect the politicans place.

If the politicans truly wanted to do something about the economy they would do the following:

1. Lower or eliminate the capital gains tax.

2. Lower the tax rate on all tax brackets

3. Stop the stupid overspending in congress

4. Less the regulatory burden on business

5. Eliminate NAFTA and the other so-called free trade agreements

6. Lower business taxes

7. Simplify the tax system.

There is seven things congress could do to stimulate the economy. Don't hold your breathe until the do any one of them.

Cato the Terrible

They're buying votes Cato.

cato,

i completely agree withb your prescription.