A 15% single-rate tax on all income above a livable minimum, would solve all of the tax policy issues.
To determine what a plan to permanently fix the federal income tax code would look like, let’s first look at what the goals of income tax policy should be.
The first goal should be to enact a plan that raises sufficient revenue to cover all government spending which will eliminate the annual budget deficit. The tax plan should encourage economic growth, rather than placing burdens on growth. …
Let’s focus on the three-quarters full part of the glass rather than the one-quarter empty.
Starting about 15 years ago a trend began that convinced Americans to focus on this country’s imperfections rather than its exceptionalism. This now rapidly growing trend has resulted in long-term economic stagnation and a deeply divided country.
America’s astonishing growth and well-spread generosity have resulted in the world’s most prosperous country. It has also resulted in keeping much of the world safe from unwanted oppression, mostly by leading the victories in World War I and World War II. …
If the Fed waits too long to act, double-digit inflation could result.
The Federal Reserve (Fed) continues to say that the sharp rise in the inflation rate is temporary. Inflation will subside later this year, it says. As such it will keep interest rates near zero and continue to dramatically increase the money supply by purchasing $80 to $120 billion of bonds per month. If it is wrong, the US could see a runaway inflation problem that will be painful to fix.
Treasury Secretary Janet Yellen, a former chair of the Fed, sees no inflation problem. “It may be that…
Inflation for the first quarter was nearly 4%. Any more stimulus will lead to much more inflation.
The Commerce Department just released their estimate for economic growth in the first quarter of this year. GDP increased by an annual rate of 6.4%. That means since May 1, 2020, the economy has rapidly recovered from the deep, but short-lived recession. With even higher growth numbers in the coming months and with inflation increasing, it is evident that no more stimulus is needed and may indeed be counterproductive.
The overstimulation has already caused an increase in inflation. The Federal Reserve (Fed) target…
High inflation and a stagnant economy will follow Biden's tax increases.
President Biden has proposed that the capital gains tax rate be raised from the current maximum of 23.8% to over 40%. He also wants to raise the income tax rate on the top income earners to more than 40% and raise the corporate tax rate to 28%. While he says this is needed to raise more tax revenue to pay for his social programs and reduce income inequality, exactly the opposite will occur.
In March, inflation was running at nearly an 8% annual rate. One month is not a trend, but January and February also saw high inflation.
Although there has recently been an increase in the number of COVID-19 cases, the administered vaccines should reach 70% of the population before summer begins. If that happens, the virus will be mostly contained so that economy of every state should fully reopen. That will lead to an economic boom, albeit an inflationary economic boom.
Sometime next week, the Commerce Department will report on GDP growth in the first quarter of 2021. That number will…
Any more stimulus would be counter-productive.
Just released data by the Labor Department shows that more than 916,000 jobs were added in March. That means of the 22 million Americans that became unemployed last March and April, only 8.4 million remain unemployed. In the last 11 months, the economy added more than 13 million jobs. This is a remarkable recovery that certainly needs no more stimulus.
In fact, additional stimulus will be counter-productive if it overheats the economy. If that is the case there will be a severe inflation problem. The US hasn’t had an inflation problem since 1981. The…
The private sector is always more efficient and gets better results.
Let’s face it, we live in a plastic society. Nearly everything we buy is wrapped or packaged in some form of plastic. When we eat fast food, order take-out meals, or even stop for an iced coffee, we’ll be handed plastic cups, forks, spoons, and straws. We’ll use them once and then throw them away.
But that’s not the end of the story for plastic waste. It’s only the beginning. Of the 8.3 billion tons of plastic waste that exists today, barely any is recycled. Most of it is…
Already approved $6 trillion in stimulus spending is more than enough to grow a $21 trillion economy.
Recently, both Federal Reserve Chair Jerome Powell and Treasury Secretary Janet Yellen said that although the economy is forecast by them to grow 6.5% this year, more stimulus is needed. That means nearly $6 trillion of already-approved government stimulus is not enough. How much is enough?
In 2009, the Obama administration signed an $800 billion stimulus package. That was, by far, the largest stimulus package ever enacted. …
Huge government deficits, a too rapidly increasing money supply, rapidly rising energy prices and a potential capital shortage, will lead to inflation.
Many economists and much of the public are beginning to worry about the massive increase in the money supply and the massive increase in deficit spending. With a public debt approaching $30 trillion and a money supply that has increased by 25% in the last two years, the worry seems justified. However, Modern Monetary Theory (MMT) says we have nothing to worry about.
MMT says that since the US uses a currency that is not backed by anything…
Dr. Busler is an economist and a public policy analyst. He is a Professor of Finance at Stockton University. His op-ed columns appear in Townhall, Newsmax.