Budget cuts deepen the recession and stifle recovery by immediately putting people out of work, reducing public and private investment, and abandoning residents in their hour of need. The long-term economic consequences are also damaging, including lost productivity, a less-skilled workforce, and reduced competitiveness.
The key to the twin goals of budget repair and economic recovery is significantly increasing progressive taxes.
[...]While naysayers claim that increasing taxes during a recession is unwise and counterproductive, it will work if you pick the right taxes.
Progressive taxation raises revenue, underwrites critical public investment, stimulates additional private investment, and maximizes job retention and creation. In the long run, progressive taxes are among the most sustainable revenue sources and result in more widely shared prosperity.
And how does Scott Walker's plan compare to the best way? Not so good, actually.
Posts
Raising additional revenue without corresponding cuts to future growth in spending is the reason these states are in this condition. Placing the word progressive in front of the tax will not fix it.
ReplyDeleteAnd, of course, just because I tweet it, it doesn't mean that's my position. :)
ReplyDeleteThat is probably the most ridiculous and economically backward reasoning I've ever heard. How does progressive taxation increase private investment?
ReplyDeleteIt might help if you actually read the thing, Aaron.
ReplyDelete"Progressive taxation raises revenue, underwrites critical public investment, stimulates additional private investment"
ReplyDelete