| Rath said: I agree, austerity measures are needed to bring the country into surplus. These measures need to include both increases in taxes and spending cuts. I'm really a fan of the 'Buffett' tax, it only seems sensible. |
I wouldn't mind seeing tax increases, but the Buffet Rule just seems problematic. It is afterall essentially a giant tax on new investments. I don't know if they've properly covered the buffet tax in New Zealand, because few places can actually barely be forced to cover it correctly here but essentially it's an "Alterantive Minium Tax" that taxes investments and only hits people whos main form of income is people who put most of their money in the economy through investments and stocks.
Such a thing would likely case hesistance in areas of high risk. (which is where rich people are valuable) and cause a move more towards "safer" invesments. Which would make things hard for the average investor. (something like 40-60% of people hold investments in the US.)
Problematic because rich people investing is more or less "Free" stimulus, without the need of the government taking on a huge debt that it may or may not ever decide to pay off.
