This article may seem dire, but one can wonder if it is quite so bad. There is an astonishing number of Experts out there, who see deflation as the fall of Western Civilization. I have often postulated that deflation could possess neutral, if not beneficial, potential scenarios. Deflation tends to reintroduce older cottage industries, reestablish older types of employment, and raise the quality of Product to justify retention of Product prices. The decline in Housing prices were long awaited, and in my mind, should have stabilized somewhere in 2002; later Home pricing being in itself over inflationary. The only problem here was the tie between Credit and Housing Retail. An intelligent Government would have long established a minimum and maximum Interest rate for Mortgages. It is and was a sensible plan to separate Mortgages from the Credit industry, while presenting little initial impact to Credit overall; banks and financial institutions devoting their attention to the viability of the mortgage payment system.
Read this Piece, and ask whether the Rich should be taxed higher than they currently are taxed. I had a Thought which takes much more examination than my passing idea. It is a sincere Spread the Wealth concept. Keep the Tax rates as they are, but add an amendment to the current law. This would insist that Everyone making more than $100,000 per year must rebate a fellow Taxpayer his Tax Cost for every $25k he makes above $100,000. It is clear that the IRS would have to present a Tax List of Taxpayers who have a real Tax Cost after deductions and reductions; with the law insistent that there must be a Tax Cost above $1000. It is quite clear that Taxpayers would quickly turn to family and friends first; especially if the Tax law would not invoke the Gift tax process. There might even be a Trickle Down effect generated.
It is quickly apparent that the process requires a specific number of benefitted Taxpayers for each major Taxpayer. Ordinary Taxpayers could be rapidly absorbed, though a quick scan by myself suggest that no more than 40% of Taxpayers could extract benefit with and from their Tax Costs. It is also equally apparent that major Taxpayers need minor Taxpayers who pay more than $1000, but as little less than that as possible. Minor Taxpayers could also find relief from subsidiary Costs of Tax compliance with expert help. Every major Taxpayer will want to keep as much of that $25,000 as he can, while every minor Taxpayer would enjoy the relief from Tax Cost. It would be a situation of great entertainment, as the major Taxpayers will certainly be faced with the subsidization of minor Taxpayers, as the IRS would assign Those to get rebates if the major Taxpayers do not supply their own choice. lgl