As a nation we are killing ourselves over the budget and the debt ceiling. Did you see Obama on TV? He looks worn down. He does not have the power to craft a solution.
That the USA has a consensual process of creating laws is one of the things that make the country great. It is also one of those things that just kills us from time to time. Today it is killing “us”, it may well kill Obama’s chance to get re-elected.
I wonder if we should do this “China Style”. They do it differently. There is not much debate or discussion. They just print an announcement in the newspaper. They did just that the other day. So what are income taxes in China? The answer is they are very high:
The highest bracket of 45% is for anyone earning above $145,000. Of interest to me is that anyone with an annual income over $64K pays 35% tax.
This chart looks at US tax liabilities by income group. The highest earners pay an average of about 25%.
If the Chinese marginal rates were applied in the USA it would generate about $1.5 trillion of additional revenue. The budget would be balanced overnight. Of course if the US did something like that it would trigger a massive depression. Why is that?
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