Comments on: Why raising taxes is easier than cutting programs

By: A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com

A Lap Of The Blogs : WhereDoesAllMyMoneyGo.com — Fri, 14 Aug 2009 03:47:28 +0000

[...] Thicken My Wallet explains why it might be easier to raise taxes than cut spending programs. [...]

By: admin

admin — Thu, 13 Aug 2009 21:21:58 +0000

Thanks Erick. Haha. All I want for Christmas is an editor!

By: Erick

Erick — Thu, 13 Aug 2009 20:20:41 +0000

Although the mental image was entertaining, I think you meant “sacred cow” rather than “scared cow”.

By: Caitlin

Caitlin — Thu, 13 Aug 2009 18:34:57 +0000

Agreed! People are too used to wanting it all (and with the miracle of credit cards and enormous personal debt, too used to having it all). I predict a tax hike too. Sigh.

By: admin

admin — Thu, 13 Aug 2009 14:42:24 +0000

It is always nice to hear from readers from the left side of the Pacific. Hong Kong is a good example of relatively low tax, moderate public services jurisdiction (although with an efficiency that puts North America public service to shame). Its budgetary deficit, relatively speaking, is extremely modest compared to other jurisdictions.

By: Thicken My Wallet » Blog Archive » Why raising taxes is easier … | Money Blog : 10 Dollars : Money Articles.

Thu, 13 Aug 2009 11:26:49 +0000

[...] Read the original here: Thicken My Wallet » Blog Archive » Why raising taxes is easier … [...]

By: traineeinvestor

traineeinvestor — Thu, 13 Aug 2009 09:41:07 +0000

Actually, the situation is worse than you describe. Tax increases (other than sales taxes) typically hit only a relatively small part of the population. As an example, in 2007 a mere 2.3% of Americans paid about 60% of the total federal income tax collected. Less than half the population (46%) paid any federal income tax at all. Similar statistics can be found for most (if not all) forms of tax other than sales taxes.

In one person one vote system, it is polticially expedient to push the cost onto a minority through higher taxes than to deprive a much larger group of voters of the benefits paid for by those taxes. This is one of the reasons why I do not want to see any more democracy in Hong Kong (where I live).

People who advocate higher taxes without building up reserves during good times, are also accepting that there will be significant budget shortfalls during any economc downturn because taxable income is usually very sensitive to changes in economic conditions. California is currently learning this lesson the hard way.

As the British found out in 1773 and California more recently, eventually the taxpayers get tired of being bled.