So what is wrong with a tax increase to address budget issues? Much of the recent rhetoric seems focused on the “control of spending” as the means to control the budget. What problems does a reduction in spending address (small business expansion) and who benefits and who is harmed? What is the best solution from a macro position? Data clearly indicate fewer and fewer individuals hold more and more of the wealth. One of the newest Nobel winners identifies income inequality as one of the most important problems we face. How else would you address needs without moving resources around?
Newest recipient of the Nobel Prize in Economics – Robert Shiller
Shiller, an economist famous for having warned about bubbles in technology stocks and housing, said inequality has been worsening for decades. He said he supports having a contingency plan in place now to raise taxes on the rich if inequality gets worse.
“The most important problem that we are facing now today, I think, is rising inequality in the United States and elsewhere in the world,” Shiller said.