Thursday, March 31, 2011

Comment on "Progressive Nudges for Household Savings"

"If I were a card-carrying progressive" I would start by cutting (preferably eliminating) all corporate welfare, "community development grants" (which go to big construction firms and real estate speculators) and other government programs that primarily benefit the rich. I'd put an income limit on who was allowed to receive agricultural subsidies.

Remember, all income tax *deductions* (as opposed to credits) are perverse because they benefit the rich more than the poor, because a poor man getting a $1000 deduction only gets 15% of it, while a rich guy gets 30% or more. So I'd change all income tax deductions (primarily mortgages and health insurance) to tax credits.

For the record I *am* a card-carrying progressive, or at least a bleeding-heart libertarian. Which means I care more about the poor than Obama, Rahm, and the rest of the "let's bail out the rich and ignore the poor" gang in both parties. And I also know which policies actually work, as opposed to the "let's have rallies and riots" all-mouth no-brain crowd.