Thursday, July 16, 2009
Sharing the Pain
What is the sharing thing to do during a depression? Even during the present depression, unemployment is only ten percent. That means that ninety percent of us still have paying jobs. We have money that we can share to take care of the unfortunate ten percent.
How do we do this? The natural tendency is to retrench, for States to let workers go when tax revenues fall, to put off expensive purchases or projects to remodel our houses, etc. This tendency is not sharing; it's greed. Our playmate doesn't have a toy of his own and we won't let him play with ours.
The sharing thing is to increase taxes to help the unfortunate unemployed. I know that this is an idea that won't be popular. I will be accused of being worse than a communist for even mentioning it. I still believe it. During times of recession or depression, individual tax rates on persons who have incomes should be increased to make up for the shortfall of revenue. Governor Schwarzenegger is dead wrong in opposing any tax increase. Now is the time to increase taxes on those who can afford to pay. The taxes can be reduced when good times are with us again.