Friday, February 10, 2012

Hold the Schadenfreude, Please

In case you missed my column yesterday in the Omaha World Herald, here is a link:

This essay focuses on the need for serious attention from the political ruling class to a plan to address our fiscal situation, lest we become like Greece. The Obama plan so far is based on tapping into voter Schadenfreude (delight in the downfall of others) regarding the rich, but it otherwise fails to provide any serious effort to address our fiscal crisis. Using 2009 Statistics of Income data, it shows that there is just not enough tax-preferred capital income to make a meaningful dent in our annual deficits, even if we confiscate all of that income. Wage income -- and I might have added, income from partnerships and S corporations that is predominantly wage income -- provides the real engine for tax revenues. Keep that in mind lest you are tempted to support a "raise taxes" approach to financing our government.

No comments: