Debt ceiling fix

Posted: 30 September 2013 in Uncategorized
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In one sense, Henry Aaron is right: the limit on the debt ceiling is “a law with no discoverable purpose.” He suggests, therefore, that Obama ignore it.

But there are at least two other ways to avoid the problem. One is for the Treasury to avoid the federal debt limit by handing the Federal Reserve a single $1 trillion platinum coin. But that’s too easy (even though Jon Stewart didn’t get it). The other is to raise taxes on large corporations and wealthy individuals. Raise them by a lot. Set a marginal tax rate of 100 percent.

That’ll fix the problem almost immediately, since those threatened with paying higher taxes will quickly run to their stooges in Congress and demand they raise the debt ceiling. Anything to avoid paying higher taxes, in order to keep the lion’s share of the surplus in their pockets.

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