"I believe the EITC was expanded, but just giving people money doesn't work because it brings unwanted incentives into play"

ya like the added incentive to hold a job

btw you shrewd apologists
the pay roll tax targets job holding incentives
cut payroll taxes not income taxes if you want more "productive activity"

incentivizing voluntary personal savings
is a ghoulish farce in a credit money based economy
with a good tax and transfer system in place
household savings don't even need to exist ...at all

chew thru that please
before suggesting
we the jobbled masses vote to
incentivize social investment
by cutting high savers taxes
"the rich are paying .. their fair share."

sky hook anyone ???

the rich (honest rich)
pay only the taxes
our electoral majority insist they pay

right now my guess
their tax bill/tax share
is headed up

Reply Oct 31, 2009 at 05:23 AM

paine said...
to shift the tax burden onto jobblers
so rich high savers
can lend it back to these job class geefs
in the nasty form of consumer credit
has zero DIRECT investment impact ...eh ??

this tax reducting consumer credit increasing loop
increases household effective demand
and indirectly corporate investment
but no more ...and likely less
then our present tax and transfer system
and certainly less then deficit financed
targeted social spending and investments
particularly
where the fed monetizes the T financing paper
at least until the production system hits full tilt output

Reply Oct 31, 2009 at 05:32 AM

paine said...
it would really help
if folks tried to learn how our econommy
actually operates
before mooing about their deeply held values
and/or
agressively thrusting
mobius strip policy options our way