The Best Idea To Reanimate The Economy You Won’t Hear About Elsewhere

We increase the top income tax rate from the present 39.6 to 45 percent and use ALL the new revenue generated, ALL OF IT, to reduce lower income tax rates.

This is NOT a tax increase. No new money flows to the government. It’s merely a tax shifting from the presently under-taxed top to the over-taxed working lower and middle.

This immediately reduces income inequality. It immediately improves the earnings and economic lives of the working middle class and lower paid workers.

It animates the economy immediately by spawning more spending by most Americans who have more net income to spend.

It reduces the growth of poverty, whose biggest cause today is the working lower and middle sliding down.

And this is critical. It does NOT reduce needed investment that grows an economy. Rather, it generates new investment to tap into greater consumer spending — it loosens the strings on the vast billions not being invested by bloated corporations today because there is no consumer spending to justify such investment with all the new jobs this investment would also generate.

Republicans won’t back this approach because they will call it a tax increase (it isn’t, just a tax shifting), and label it class warfare, which is silly since many if not most tax changes benefit some group at the expense of another.

The Democrats won’t back this proposal because they want to tax the rich to fund government programs — not a bad idea in many cases, but a totally separate issue that should be dealt with separately.

This is a proposal that many on the small-government right can support along with people on the generally big-government left.

Why haven’t you heard about this simple and obvious way to immediately reduce income inequality, aid the middle class, and do the other worthwhile things noted above? Because no one is being paid to peddle the idea.

Michael Silverstein’s newest book, The Devil’s Dictionary Of Wall Street, is available from Amazon.

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