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Wednesday, February 27, 2013

'Republicans Must Bridge the Income Gap'

Sheila Bair:

Grand Old Parity, by Sheila Bair, Commentary, NY Times: ... I am a capitalist and a lifelong Republican. I believe that, in a meritocracy, some level of income inequality is both inevitable and desirable... But I fear that government actions, not merit, have fueled ... extremes in income distribution through taxpayer bailouts, central-bank-engineered financial asset bubbles and unjustified tax breaks that favor the rich.
This is not a situation that any freethinking Republican should accept. Skewing income toward the upper, upper class hurts our economy because the rich tend to sit on their money... But more fundamentally, it cuts against everything our country and my party stand for. Government’s role should not be to rig the game in favor of “the haves” but to make sure “the have-nots” are given a fair shot. ...
For instance, as part of renewed fiscal discussions over sequestration, Republicans should put fundamental tax reform on the table and make it our priority to end preferential treatment of investment income, which lets managers of hedge funds pay half the tax rate of managers of shoe stores. ... If we eliminate this and other unjustified tax breaks, we can produce enough new revenues to lower marginal rates and reduce the deficit...
Republicans should also put rebuilding the nation’s transportation and energy infrastructure high on our political agenda. ...
Having worked for Senate Republicans in the 1980s, I remember a time when Republicans stood up to special interests and purged the tax code of preferences for investment income and other special breaks. ...

    Posted by on Wednesday, February 27, 2013 at 10:07 AM in Economics, Income Distribution, Politics, Taxes | Permalink  Comments (34)

          


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