Paul Ryan’s worst nightmare: Here’s the real way to cut poverty in America – Salon.com

There is much in this article for me to disagree with (for one, giving money away and other methods of providing safety nets do not reduce poverty, they just blunt the hit for those finding themselves poor) but he does come to a conclusion that I’m fully in agreement with:

But the countries with really generous welfare states and social insurance systems, like those of Scandinavia, do not pay for them chiefly or solely with “soak-the-rich” income taxation. Progressive income taxes are part of the mix — but as Peter Lindert has pointed out, broad, relatively regressive taxes that fall on the middle class and working class, such as payroll taxes and the value-added tax VAT, a consumption tax, are necessary to fund governments that take a bigger bite out of a nation’s GDP without inducing capital flight — or even capitalist flight.

via Paul Ryan’s worst nightmare: Here’s the real way to cut poverty in America – Salon.com.

A consumption tax is going to be necessary to fund the government at the rate it is demanding that it be funded and not cause more capital to flee than already is taking place.

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