Wednesday, May 27, 2009

Taxing Rich and Poor

I appreciate Anyon's evaluation of our economic system, but one obvious question jumps out at me. Admittedly, I've only read the first 4 chapters at the time I write this, but there seems to be an "elephant in the room" with regards to her argument about a wealth tax that could have covered the $60 billion deficit that states collectively built up in 2003. Namely, she contends that a combination of corporate taxes and the wealth tax would create billions that "would be available for use in job creation and urban schools."

My question is, what makes her think that this new-found money would be spent on urban schooling? I think it's a bit optimistic of her to say that political contention and public struggle could make these funds available for the public good. Is there a precedent for that? In our current economic state (huge Government deficits, funding wars, major companies in jeopardy, etc.) I have a hard time believing any new money that becomes available to the Government would be used for improving situations in urban areas, either through job creation or education. It's sad, but I guess I'm a bit more cynical than Anyon when it comes to public spending.

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