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View Diary: What the rich pay in federal income tax- pales to what the middle pays in state tax (16 comments)

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  •  I think progressivity is over blown (0+ / 0-)

    creating a stable economy should be the goal, and for 50 years, 1938-1988, there were 3 recessions where we saw -2% GDP. During the previous 100 yrs, a downturn every 4.3 year, 28 of 31 downturns saw peak to trough of 20-33%, unemployment of 15-30% lasting 1 to 5 years.

    Since 1988, we've had 3 recessions, one of which went worse than -2% GDP and is now in its 5th year. The 1986 Tax Reform Act removed many of the incentives for domestic inventment, this cost us jobs, combined with the increased outsourcing in the 1980's put us on the path to ultimately destabilizing our economic system/marketplace.

    I would argue that a tax system that meets the dictionary definition of being progressive, may still foster instabilities. SO tax fairness is not quite the right term, having shorter and shallower downturns should be the goal.

    .................expect us......................... FDR 9-23-33, "If we cannot do this one way, we will do it another way. But do it we will.

    by Roger Fox on Sat Nov 02, 2013 at 05:03:57 PM PDT

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    •  Stability is more complex (2+ / 0-)
      Recommended by:
      Roger Fox, kurt

      This last recession is qualitatively different from earlier postWW2 ones. It is more similar to the Great Depression, in cause and consequences, than anything else.

      Tax policy can't deliver stability by itself,  although automatic stabilizers in tax and spending can work for the ordinary downturns, limiting length and severity. But not for the liquidity trap scenario of today.

      Real long-term stability requires that the financial sector be strongly regulated. Banking should be boring, as it was for a long time.

      But we now have severe and rising inequality, a broken political system, and little chance of having good economic policies.

      Watching  the discussion of how much to cut food stamps is profoundly depressing.

      "When strong winds blow, don't build walls, but rather windmills: there is a way to turn every bit of adversity into fuel for improvement." -Nassim Nicholas Taleb

      by Urban Owl on Sat Nov 02, 2013 at 05:19:06 PM PDT

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