Tuesday, November 16, 2010

Economy - #2402 - VIDEO: Paul Ryan on Foundation for Growth - Weekly Standard (2) Thomas Sowell: Deficit Reduction (3) Bill Murchison - The Tax Rate Racket - Townhall

Wisconsin Republican congressman Paul Ryan, likely the next chair of the House Budget Committee, was on CNBC's Squawk Box this morning. Ryan said the United States needs "low tax rates," "sound and honest money," "regulations that are fair, predictable, transparent, [and] reasonable," and to "cut spending." Ryan has become the foremost voice in the House Republican caucus, and perhaps in the entire party, on fiscal responsibility. Matt Continetti praises the Wisconsin congressman's plan for the impending federal entitlement crisis, Ryan's "Roadmap", in one of this week's editorials.

Thomas Sowell - Deficit Reduction - Another deficit reduction commission has now made its recommendations. My own recommendation for dealing with deficits would include stopping the appointment of deficit reduction commissions. It is not the amount of money that these commissions cost that is the issue. It is the escape hatch that they provide for big-spending politicians. Do you go ahead and spend the rent money and the food money-- and then ask somebody else to tell you how to escape the consequences? If President Obama or the Congress were serious about keeping the deficit down, they could have had this commission's recommendations before they spent hundreds of billions of dollars, handing out goodies hither and yon to their pet constituencies. Read more........

Bill Murchison - The Tax Rate Racket - The flap over whether to extend present tax rates for the rich finds its center in a cultural proposition: Liberals, including rich liberals, either don't like the rich or feel obliged to pretend they don't.......... The Tax Foundation, which exercises impartial oversight over the numbers, says the top 5 percent of taxpayers in 2008 (adjusted gross income, $156,619) earned 34.7 percent of AGI while paying 58.7 percent of federal individual income taxes. The top 1 percent paid 38.02 percent of all taxes, whereas the bottom 1 percent (adjusted gross income of $33,408) paid 2.70 percent. Without those rich people paying taxes, where would we be? Ask around in California, whose economy -- heavily dependent on revenues from the fat cats of Silicon Valley and like venues -- is underwater in large measure due to the recession's effects on those same fat cats. Taxes on income, first levied in Britain in 1895 and in the United States after 1913, have a patina of fairness and equity. Why shouldn't those with the most pay the most? They can afford to. Warren Buffett often make this point. As we see, even so, they pay more already. Equally to the point, as Congress commences debate on extending the 2001 rates, tax hikes don't always bring in the revenues their proponents project. This is because changes in tax rates cause changes in behavior.
Read more.........
The above video and articles were contributed by Steve Peters.

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