December 5, 2012

Crash Me Not!

This blogger might well be the last person to recommend that a Government make policy with a view to affect the stockmarket. It's a casino, and a thrilling one, best left alone.

But there is little point in causing a crash in the ubiquitous public pastime by not being able to do a simple thing that needs to be done in any case...Making the public budget sustainable, while adding physical and human Capital for the future. This blogger is bewildered with the semantics and language killing any agreement:

Why does it have to be "1 DOLLAR OF REVENUE for 3 dollar of spending cuts" and not "THREE DOLLAR OF SPENDING CUTS!!! for every dollar of Revenue added"

Why "raise tax rates on the wealthy" and not "Make and Apply a progressive AMT on slabs (0-40K, 40-110K, 110-180K, 180-250K, 250K+) of Gross Total Income (work + Cap Gains + Finance)" for until there is a Comprehensive Tax Reform that "reduces rates, and exemptions, deductions and special treatments" and frees us from the horror of struggling with taxes every year, yielding a tax code whose progressively cannot be mauled or flipped with application of loopholes.
The temporary AMT, since it'll apply on GTI, would need tax RATES *far lower* than the ones on NTI with no dodgeability unto its progressivity.

Why it needs a one time deal, and not "As you give me Revenue uplift, I will give you cuts....3 times over."


Why not: Mr. Boehner gets to choose how to raise the revenues, while Mr. Obama gets to choose what the reciprocal 3x cuts (restructure-to-shrink) will be, as the former delivers the Revenues.

But the real thing is the Overarching deal:

The increased revenues to be exclusively applied to the deficit, as also half of the cuts. The other half of the cuts-savings used back to strengthen the delivery of Education and Physical infrastructure that the Gov directly provides, not through private parties, and not utilized for expansion of employment in pushing rules, procedures and files.

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