04 Nov 2010

Soak-the-Rich Is Bad Policy

Economics, Shameless Self-Promotion 5 Comments

I have a Mises Daily today about Sunday’s 60 Minutes segment on hiking taxes, especially on the rich. Don’t tell anyone, but I actually used a bunch of empirical arguments! (This is permitted once every 7 years on Mises.org.) An excerpt:

The only true solution to the federal and state fiscal crises is to cut government spending. Governor Gregoire can pretend that this would return people in her state to the Dark Ages. In reality, the total operating and capital budget for Washington State grew from $53.5 billion in the 2003–2005 budget period to $68.5 billion in the 2007–2009 budget period.[2] That 28 percent growth over a four-year period works out to a growth in spending of 6.4 percent per year. Now some of the increase could be blamed on price inflation, and some on population growth, but even so, Washington State could trim its spending merely by returning to its budget of a few years ago.

5 Responses to “Soak-the-Rich Is Bad Policy”

  1. Jeremy says:

    I think higher taxes is a way to give the government a raise. The government doesn’t deserve a raise.

  2. Ashley Johnston says:

    The rich might be the first to be soaked, but they are certainly not the last.

  3. Geoff says:

    Check out these rich capitalists in Copenhagen


    Market innovation…

  4. K G Misra says:

    Economics cannot treat private and government differently as both of these are public/market activity. Measurements are a value judgment between parties of contract for every utility exchanges ( offered and received).

  5. Andrew says:

    Very biased piece by 60 min. Stockman makes the claim that spending cuts are impossible, and where is the follow up? Stahl couldn’t come up with one example of government waste to challenge him with? And then they ask the Governor, and the first thing she mentions cutting, is funding for people in hospice. I once looked at the budget of the city of Cleveland, and they had spent about $100,000 in one year renting copy machines. Now I’m sure they actually did need some copies made, but come on. So do we try to cut corners on things like this (I’m positive there are similar examples in WA)? No, we’re going to let your grandma die instead. Absurd.

    But its for the kids. And you guys (CEO’s) always complain about our educational system, so why don’t you allow us to take your wealth by force to improve it?