posted on Oct, 19 2008 @ 07:21 PM
reply to post by infolurker
The problem with Hauser's Law is that it dont explain why in the face of the current tax cuts policies that this current administration has
implemented, we still are loosing our job, our economy is in a recession, people STILL underreport income and companies STILL shift jobs overseas.
What Hauser's Law fails to take in consideration is that our trades policies are not favorable to our economy. Also that no matter what tax policy we
put in place people are still going to cheat in their taxes, like JOE "the Plumber" there is not better example, here is a guy that is worried about
tax increase but then it comes out that he has cheated on his taxes. Human behaviour is something that sometimes hard to quantify in these studies.
I agree with the overall data, no problem there, specially this
Because Mr. Hauser's horizontal straight line is a simple fact, it is ultimately far more compelling. It also presents a major opportunity. It
seems likely that the tax system could maintain a 19.5% yield with a top bracket even lower than 35%.
But I look at it this way, what our tax policies do to the economy? Do they stimulate growth or do they allocate government resources to places that
are not needed.
If you look at our past 8 years obviously the tax cuts policy has not work, the intended purpose has not yield any benefits to our economy, to our GDP
and to the contrary it has exploded our National Debt.
With that said and taking Hauser's Law at face value if we raise taxes to companies and the rich in order to stimulate the economy by placing that
money in the hand of middle and lower income people and you get the keynesian effect, we might very well have an economic boom that at least can take
us out of this recession or better yet create another economic boom like in the Clinton years when we saw the biggest economic boom this country has
EVER experience. All that while maintaining the same federal tax revenue yield.
That's why I believe that when it comes to tax policy, is not only about the policies, to raise or to lower, is also about how they are
[edit on 19-10-2008 by Bunch]