I was watching CNBC this morningt. Obama's economic advisor was on and his solution to the housing crisis is lower tax rates for poor people in order to make housing more affordable for them. This is from an econmics professor and I honestly cannot believe the stupidity coming from a man who should know better.
1. The bottom 50% of income earners pay 3% of all federal taxes. The top 10% pays 70% of all federal taxes. Poor people pay no tax. Rich people pay almost all taxes. Despite what you may read in the NY Times or hear in a Hillary speech, there is no such thing as a tax cut for low income workers.
2. How about letting house prices fall to their natural level. That is what makes an asset more affordable....a lower price. The reason for the crisis is that houses are too expensive for people to afford. Lower interest rates, lower tax rates, interest rate freezes are nothing but shell games. When you make $30K a year and buy a house for $500K it is a recipe for disaster.
This is an economic advisor for a possible president?
1 comment:
Most economists are either employed by the government or by banks pushing stocks. No surprise that they want to do whatever is necessary to save the stock market.
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