I should discuss the Class Warfare issue connected with this article, but almost All understand the stupidity of the allegation when referring to Taxation; charging one group of People fractionally more than another group has nothing to do with Class, only a denial of Greed. The article does a service by defining the exact arena in contest. There actually should not be a AMT, so there would be no need for a Fix. The Mortgage Deduction should have a nominal maximum which could be fixed yearly to the content of Congress, rather than an automatic Tax deduction which favors the Rich. John Berry states that Tax rates are not as powerful as oft proclaimed; I would say that Tax rates may be counter-cyclical in nature, and present a retardant to economic growth when too low (mis-priced Resource Costs, and over-inflated Capital assets portfolios). Nothing is quite as effective in Tax policy as is elimination of Tax remissions of any type which are not universal. The final effective thing to be said consists of the fact that which was not caused by Tax policy, i.e. the Recession, will find little correction from Tax policy.
I wonder why Menzie Chinn feels that such an obvious element has to be outlined, though he does not mention the discrimination against foreign products existent in the Chinese economy–the greatest being extreme Price (World prices for foreign Goods, with a separate internal Pricing for domestic production). The one thing which should be recognized is that while China will do as it can to increase its own Exports, it will maintain an active opposition to Imports. There will not be any attempt to equalize with World prices, and American Exporters face the same resistence in China as has been traditional. This tendency, Worldwide under recessionary pressures, will assure that Trade will not regain its losses early or easily.
Today We are being ruled by the Mind Set of Congress, as Obama is too inexperienced to be anything other than a Mouthpiece for the Senate and Congress. I said that, which is to say that George Will did not, though I agree with his assessment throughout. It is the actual Rule of outdated economic theories proven ineffective by prior performance, and the established positions of legislators previously affected by the corruption of Special Interests. It is the primary reason We are back to old formulas proven incapable before, and why We can never seem to move forward. We do not need further Government Spending, but serious Tax revision; starting with elimination of the vast loopholes within the system. I would suggest Congress best would serve if they could manage to balance the Budget. Still, I have always been the odd man out! lgl