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Investment Analysis Clubs / The BMW Method


Subject:  Re: Bargain hunting Date:  11/16/2012  10:11 PM
Author:  Jim2B Number:  40786 of 42233

There are three ways to deal with a deficit:

1) reduce spending
2) increase revenues
3) both

This type of thinking in some static.....

there is a forth way to lower the deficits longer term.....

economic growth

I would say that this falls under "increasing revenues".

Depending upon where the country sits on the Laffer Curve, increasing tax rates might decrease tax revenues (my suspicion is that we are in fact sitting in this region). The important point is that people wishing to balance the budget must be tax rate neutral.

Too many on the left are convinced that increasing revenues by taxing the rich is the best way to do this. Honestly, that is a terribly ignorant position. Even if increasing tax rates would increase revenues, the amount raised by increasing it on only the rich is trivial.

On the right, lowering taxes is considered the best way to do this (I happen to think they're right but am willing to concede that I could be wrong). This is a bit more enlightened position but those on the right need to be a bit more flexible.
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