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Author: ModernViking Big gold star, 5000 posts Top Recommended Fools Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 1977205  
Subject: Re: Income redistribution Date: 11/17/2012 11:16 PM
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There are infrastructure projects that I believe can help with the economy. For instance, the widening of Rt 93 in NH from the MA border up to Manchester can provide better access to southern NH for businesses who which to locate there. I mentioned expanding natural gas infrastructure before. This would have a two fold effect of direct employment (excavation, pipe laying, etc) and providing a cheaper source of energy to home and business owners (more money in their pockets to spend).

Yup. Stuff like that. Good place to put our money.


Taxing the upper quintile and transferring that money to the lowest quintile would be politically difficult. I would mot favor that because it would remove motivation for someone in a lower quintile to move up. Part of the problem with welfare, at least prior to the Clinton era reform, was that it was designed to keep you dependent. I'd much rather see the money invested in infrastructure which would provide jobs and opportunity to the lower quintile to improve their standing. It also addresses a long standing issue.

Just to be clear I'm not at all in favor of a direct transfer of money between quintiles, especially not in the tax code. Speaking directly to income taxes that would involve a tax penalty in higher brackets converting to lower liability in the lower brackets, which comes out to a refund for those with little or no tax liability to begin with. "Politically difficult" doesn't begin to describe it.

Nor am I at all in favor of encouraging dependency. In fact I'd argue that any "redistribution" of increased rates the top quintile should take the form of job training and placement - maybe even compulsory. But the jobs need to be there to make something like that work.


Agreed. The cuts need to come from the largest expenditures, military and entitlements, otherwise you're not approaching it in a serious manner if you think discretionary spending will get you there.

Entitlement reform is a must. There is also room for reform in discretionary spending but not where the Republican congress seems to be focusing on. Rather than Planned Parenthood and PBS we need to look at misguided attempts at "market making" in the form of subsidies to industries that are already massively profitable.
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