Technical Correction

Correcting for the Whipsaw

There needs to be a technical correction on income.

The whipsaw is your income going down while costs go up. The result is a redistribution of income that, by a free market legitimacy, is supposed to add supply to control inflation at full employment which is created by the investment to add the supply (liquidity of capital).

The technical measure for correction is a progressive income tax code with no exceptions. The measure will not cause a budget deficit. It will cause a budget surplus. A regressive income tax code causes a budget deficit in every case across all jurisdictional boundaries.

While the detriment of the tax rate progresses, that progression also has the benefit of the highest incomes being assured payment of the public debt held in the highest proportion. Figuring in a risk-free payment of the debt on a declining rate of infaltion is a substantial benefit that more than offsets the loss of the tax increase. The argued inequity and detriment of the progressive tax increase is entirely false.

The Pareto Optimality of the progressive income tax measure is Strong Positive.

The technical correction to income will not interrupt or materially change the productive incentive of a free market mechanics. Rather it will both restore the mechanism and correct for its absence where the distribution of capital was allowed to consolidate into a liquidity crisis of massive proportion. The corrective measure will technically add the liquidity necessary for economic recovery and sustainable economic growth.

The role of the Federal Reserve will be reduced to ensuring the free market mechanics of the financial sector. Adding liquidity will be in large part rendered progressively obsolete being provided for in priority. Violators of the free market mechanism will be strictly prosecuted and convicted by the Department of Justice with the burden of proof on the defendant to show no violation, like it is now with any alleged tax code violation strictly enforced through Treasury and Justice.

Build the coaltion for Obama, and let the technical correction begin!

Very best wishes.

tags:
technical correction,progressive income taxation,free market economics,adjusting for externalities,public finance,election 2008