Welcome to the Friday edition of your open thread. I don’t know about you but it’s been a pretty exciting week in Delaware politics. What do you think?
I can’t wait until Republicans are charge of the economy! They are so smart!
While many conservatives have called for tax cuts aimed at benefiting corporations and multimillionaires, economist Arthur Laffer — a former member of President Reagan’s Economic Policy Advisory Board — went a step further today. Writing in the Wall Street Journal, Laffer argued that the best way to stimulate the economy is to have “no federal taxes at all.” Here is what Laffer proposed to eliminate:
No income tax, no corporate profits tax, no capital gains tax, no estate tax, no payroll tax (FICA) either employee or employer, no Medicare or Medicaid taxes, no federal excise taxes, no tariffs, no federal taxes at all, which would have reduced federal revenues by $2.4 trillion annually. Can you imagine where employment would be today? How does a 2.5% unemployment rate sound?
It’s the magical tax-cut unicorn! Zombie Reagan rules!
The Bush tax cuts are scheduled to expire in January. President Obama has expressed a desire to preserve the cuts for the middle class while letting tax rates for the wealthy reset to where they were during the Clinton administration. Conservative lawmakers and pundits have been fearmongering that allowing the tax cuts for the wealthy to expire will kill job creation and small businesses (despite the fact that fewer than 2 percent of small business owners will be affected). Last night on CNBC, Wall Street Journal editorial board member Stephen Moore went so far as to say that he can’t “see the sense” of allowing cuts for the rich to expire, and then advocated that taxes be raised on the poorest Americans in order to finance more tax cuts for the rich:
I just don’t see the sense of this. In fact, if I could have my ‘druthers, I’d raise the ten percent tax rate to fifteen percent and lower the [top] rates.
I wonder what Moore’s unemployment prediction is? He’s probably feeling foolish for not being as bold as Laffer.