Friday, November 30, 2012

The rich have two options: Compromise or lose

Why Conservatives Must Surrender on 'Redistribution'

By Josh Barro - Nov 29, 2012, Bloomberg

Liberals talk about booming incomes at the top while lower-income households barely see benefits from economic growth. Conservatives talk about a rising share of the population that depends on government benefits and a shrinking share that pays income tax.

Though the frames are different, these are descriptions of the same economic phenomenon: rising inequality of pre-tax incomes. But only liberals are advancing a semblance of an agenda to address it.

The main liberal reaction to this phenomenon is to call for more progressive fiscal policy: higher taxes on the rich people who have benefited most from the last 30 years' gains in gross domestic product to pay for programs that raise low- and middle-income people's after-tax incomes.

Obamacare, which raised taxes on the rich to fund a new health-care entitlement for the poor and middle class, is a key example of this agenda.

Liberals also advocate policies that are aimed at reducing pre-tax inequality: more subsidies for education, trade protection, industrial policy to support medium-skill jobs in manufacturing, easier unionization, minimum-wage increases, rent control.

(More here.)


Blogger Tom Koch said...

I call BS. Conservatives are against socialist ideas of government involvement in everything and crony capitalism. Stop both and the middle class will do quite well thank you. Set men free and watch them soar.

9:28 AM  

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