The IMF knows how to Help America

[thomhartmann]

The Financial Times is reporting that leading nations are still piling up debt even though there's technically been an economic recovery. In particular, the IMF is looking at US debt over the next decade and predicting that it'll be unsustainable if we don't do something quick. Of course, what conservatives want to do is slash social security and medicare while letting the government keep all those funds we've paid into the system. The IMF, on the other hand, is suggesting that a 10% value added tax (VAT - basically a national sales tax) along with increasing income taxes on rich people and adding a carbon tax like Denmark has done would raise revenues - income to the US treasury - by about 4.5 of GDP, which would largely solve the problem of the deficits Reagan and Bush left us. These are actually very doable solutions, but Republicans - representing the interests of the top 1 percent of big corporations and the top half of one percent of very rich individuals - will fight them tooth and nail. The question now is whether the Obama administration will have the political will to do it, and whether - while Karl Rove is raising hundreds of millions of dollars in private corporate money to destroy Democrats in the 2010 and 2012 elections - there will be any progressive politicians left to help things along.

[inna]

1. VAT is not the answer. Return the pre-Reagan taxes - problem solved.

[Dr.Phool]

2. The IMF and the World Bank are the two most fucked up agencies on the planet.

How about cutting the Defense Departments budget, raising royalties on mining interests from 1830 levels, and closing corporate loopholes. Don't just jack up the price of everything I buy by 10%.

[Better Today]

3. And yet they are demanding austerity in Greece? I'm confused.

That being said, I agree with more taxes rather than austerity and cutting social programs. I'm not convinced on the VAT unless it is for items over $250 so as to avoid taxes on family food, fuel, and necessities.

[girl gone mad]

4. Just say no to the IMF.

VAT and cap and trade = terrible, regressive neo-lib policies.

[Name removed]

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[truedelphi]

6. There is no economic recovery.

Nothing but smoke and mirrors.

Check out Doug Henwood, and his interview with first Scott, and then Taibbi, during the month of April 2010.
http://leftbusinessobserver.com/Radio.html#100405

People who were scared away from hiring and from spending on consumer goods earlier are feeling more confident... however since there will not be a long term stabilization of the nation in terms of real jobs, we will continue our economic slide, except that those in the Upper elite may miss being so much as dinged.