logo
  Join        Login             Stock Quote

Tax The Rich!

 November 28, 2012 03:27 PM


A couple of months ago my wife and I took a trip to Boston and New York and while there we had lunch with an old friend of mine whom I've known since fourth grade. My friend believes that taxes will and should go up on the wealthy. It seems pretty obvious that he is correct that they will go up but there is more of a conversation to be had about whether they should go up.

Several years ago as the scope of the US' fiscal problems I made the obvious and un-unique observation that to actually fix things it would require sacrifice on the part of everyone, that it would hurt and I didn't the the political will existed to do what needs to be done. Maybe some progress is happening on the political will front but that remains to be seen.

[Related -Four Stocks in the Dow Making Fresh 52 Week Lows]

Karl Denninger posted the above chart recently that captures the scope of the problem. In their never ending coverage of the fiscal cliff CNBC has offered up that increasing taxes on the wealthy will solve the problem for about a week or two. That is not a reason by itself to not raise taxes but it would do very little.

In all likelihood a real fix will have to involve a lot of little things that by themselves are too small to matter. Per the above table there are only three big things to cut into that could by themselves make a difference. Are entitlements and defense really on the table?

[Related -Some Thoughts on Greece’s Don’t-Call-It-a-Default]

Any program that endures cuts will adversely affect some constituency which is of course the meaning of everyone having to sacrifice something. Any action taken will have consequences to them; raising taxes will act as some sort of weight on demand. I would hope to hear a real acknowledgement of those consequences and that those likely consequences were taken into account in putting together the specific details of the, continuing the example, tax hikes.

My personal base case has been to expect getting means tested out of my social security check when the time comes but there certainly could be other things coming in addition to or instead of and if "fixing it" really is a priority for the country then we all need to understand this reality.

iOnTheMarket Premium
Advertisement

Advertisement


Post Comment -- Login is required to post message
Name:  
Alert for new comments:
Your email:
Your Website:
Title:
Comments:
 

rss feed

Latest Stories

article imageFour Stocks in the Dow Making Fresh 52 Week Lows

“What gets weak tends to get weaker; what gets strong tends to get read on...

article imageGreece And The Cemetery For Your Wealth

The Greek default is merely the opening act of the worst sovereign-debt crisis in history. By the time it read on...

article imageAll Signs Point To Higher Gold Prices

In the face of historic monetary stimulus from nearly every major central bank in the world over the past read on...

Advertisement
Popular Articles

Advertisement
Daily Sector Scan
Partner Center



Fundamental data is provided by Zacks Investment Research, and Commentary, news and Press Releases provided by YellowBrix and Quotemedia.
All information provided "as is" for informational purposes only, not intended for trading purposes or advice. iStockAnalyst.com is not an investment adviser and does not provide, endorse or review any information or data contained herein.
The blog articles are opinions by respective blogger. By using this site you are agreeing to terms and conditions posted on respective bloggers' website.
The postings/comments on the site may or may not be from reliable sources. Neither iStockAnalyst nor any of its independent providers is liable for any informational errors, incompleteness, or delays, or for any actions taken in reliance on information contained herein. You are solely responsible for the investment decisions made by you and the consequences resulting therefrom. By accessing the iStockAnalyst.com site, you agree not to redistribute the information found therein.
The sector scan is based on 15-30 minutes delayed data. The Pattern scan is based on EOD data.