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Trillions used for the GND is debt but trillions sunk into tax cuts for the top 1% is just good economics.
by huragok 6y ago
Trillions used for the GND is debt but trillions sunk into tax cuts for the top 1% is just good economics.
- splintercell 6y agoUnironically, yes. Remember tax cuts isn't money just given away, the 1% didn't cause the spending part of the equation. You just think 1% should pay that tab.
- sudosysgen 6y agoTaxation also doesn't reduce spending, often it causes more spending to occur than if it wasn't taxed.
- rmk 6y agoIncurring debt != Foregoing revenue via income tax
- sudosysgen 6y agoIt's actually pretty much the same. As long as the government programs you are funding aren't too wasteful - and if they are the solution is to fix the waste - incurring sovereign debt is not that much different from foregoing revenue. The difference is that if you forego revenue from the top 1% you get worse outcomes than if you tax them or cut useful government spending or print debt.
- JoBrad 6y agoThey have the same outcome, though, relative to future debts. Isn't this a distinction without a difference?
- rmk 6y agoOnce you incur debt, it must be serviced. If you forego revenue via a couple of channels (income tax, inheritance tax), you can either (a) raise debt to replace the revenue you lost or (b) provide incentives so that the revenue foregone is invested (efficiently and judiciously) to spur growth, which brings in revenue or (c) raise revenue via other channels. You can do some combination of the above. The point being, you have fewer options at hand once you incur debt, because default has dire consequences (ask Russia or Argentina), and printing money also has less desirable consequences (indiscriminate tax on everyone including those on fixed incomes and savers).
- marcosdumay 6y agoHuh? Obviously they are different things, one is consequence of the other.
- eli_gottlieb 6y agoMoney is fungible, actually.