Fixing the Fiscal Bump In The Road: Is Hiking Taxes on the Rich the Answer?

The actual Daily Ticker segment is headlined Fixing the Fiscal Cliff: Is Hiking Taxes on the Rich the Answer?

In this dialog, Henry Blodget is too right wing for me. He seems to be the more in agreement with Obama’s position than is Adam Task.

In his meetings this week, the president hopes to persuade Republicans in Congress to accept higher taxes on wealthy American while he works to persuade Democrats to agree to spending cuts in entitlement spending.

I’d like to see a lengthy trial of tax hikes for the wealthy being used to fund fiscal stimulus until the economy recovers. During this waiting period, there can be efforts made at finding ways to lower the costs of programs whose benefits people are contractually entitled to. There is absolutely no need to cut benefits.

The full scale Obamacare program before it got watered down by Congress would go a long way to solving the Medicare and general societal medical cost problem. There is some hope that in the ensuing years, enough voters and politicians would come to wake up to this fact and start reinstating some of the items that got lost the first time around.

As for Social Security, I have been promoting Franco Modigliani’s plan for putting Social Security on a firm financial footing with no decrease in benefits and no deficits in the plan. I know that I have been pushing for this since before 2005. See my old politics page section on Social Security.

Senator Ted Kennedy was supposed to get Franco Modigliani a hearing of his plan before Congress, but they both died before it could happen.

As long as the politicians are ignoring the two obvious fixes to our biggest potential budget-busters, then I am ignoring what the politicians suggest as alternatives.

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