brad delong quotes matthew yglesias quoting the washington post on the administration's tax reform plans. it seems to amount to offsetting tax cuts on rich people with tax hikes on the middle class. neat. the comments are worth reading as well. one point made is that the reform plan seems partly designed to drive state taxes down in high-tax (usually blue) states. an interesting half-joking (?) response from a couple of people is basically: "let's drastically lower federal taxes and let blue staters pay for the services they want from their states, through state taxes". interesting. though probably before you could make that work satisfactorily you'd have to deal with the fact that most states have strong red/blue (i.e. rural/urban) divides. let me pay taxes to western washington to get the progressive society i want while eastern washington gets the low-tax freedom land they want, and all will be happy. in theory.
November 18, 2004 01:57 PMCategories: economics - politics
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