Thursday, March 3, 2016

Making America Great Again

Making America great again. What does that mean?

Governments gain revenue by taxation, debt, and or currency debasement. Revenue comes from one source or another or a combination of the three.

Making America great again requires a commitment to govern. A philosophy of less government, small government is questionable. It may be romantic belief on the part of the believer.
But how does a country with over three hundred million people  have less government, a smaller government?

Austerity is one approach. That lessens taxation. It does nothing for debt. It does not make America great.

The issue inherent to income distribution inequality is that the type of income for the highest incomes is not wage income. It is investment, ownership income. Investment and ownership income is taxed at a lesser rate than wage income.

As the assumption is that high speed rail HSR 200 mph + will be government investment, similar taxation of investment and ownership income is a way to generate the government investment resource for HSR as well as other needs.

The frequent phrase, "the top 1%" really is addressing the enormously disproportionate income earned from investment and ownership income. That's where the money is. That is how with equality of taxation of investment and ownership income in comparison with wage income is of such concern. It is why trickle down economics became trickle away economics.

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