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Thursday, December 16, 2010

A Tax on Saving?

Bob Cringely says a tax on saving by high income individuals would jump start the economy:

Motivating Miss Daisy, by Bob Cringley: ...I’ll throw out one last idea that ... relies entirely on greed and self-interest to succeed. Those are two commodities we appear to have in limitless amounts. ...

Rich interests have ... shown an amazing willingness to do the most arcane and complex things to avoid paying taxes. Remember the tax shelters of the 1980s? ... The ... logical solution to restarting the economy, then, ... is a short-term tax (or tax credit — they are the same thing if you squint) on savings. Forget about accelerated depreciation — make all non-reimbursed expenses of any kind 100 percent deductible in the current tax year.
It’s ass-backward, I know, but it would work. Give rich people a short term incentive to spend like poor people, then phase it out over time.
If we are metaphorically in the same position as FDR in 1938, this wacky policy would please the right while giving a financial boost equivalent to World War II but without the war. Recession over.

    Posted by on Thursday, December 16, 2010 at 02:23 AM in Economics, Saving, Taxes | Permalink  Comments (53)


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