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	<title>Comments on: People Who Think Taxes Will Have to Go Up</title>
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	<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/</link>
	<description>What happened to the global economy and what we can do about it</description>
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		<title>By: Andy Hailey</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-20489</link>
		<dc:creator>Andy Hailey</dc:creator>
		<pubDate>Mon, 20 Jul 2009 00:39:15 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-20489</guid>
		<description>1.  Causation – Paying Taxes Contributes to Everyone’s Success
Paying taxes supports America’s infrastructure and improves the chances of success for all its citizens. This contradicts the claim of CWCs that cutting taxes, like Nixon, Reagan and Bush did, will solve our problems. Cutting taxes, especially for the rich, only increases the chances of success for the rich – like bonuses and/or continued employment for the CEOs of banks too big to fail – while it reduces the chances of success for the rest of America’s citizenry – now losing their jobs and homes.

http://the-wawg-blog.org/?p=1846



Freedom Isn’t Free – What Are We Willing to Pay For It?
What are we willing to pay for freedom? How about our fair share of citizenship dues – taxes not unlike those of WWII? I suggest we raise the 33 percent tax rate to 35, let the 35 return to 39.6 percent, and add several more brackets for those making more than $500,000.  
http://the-wawg-blog.org/?p=1963</description>
		<content:encoded><![CDATA[<p>1.  Causation – Paying Taxes Contributes to Everyone’s Success<br />
Paying taxes supports America’s infrastructure and improves the chances of success for all its citizens. This contradicts the claim of CWCs that cutting taxes, like Nixon, Reagan and Bush did, will solve our problems. Cutting taxes, especially for the rich, only increases the chances of success for the rich – like bonuses and/or continued employment for the CEOs of banks too big to fail – while it reduces the chances of success for the rest of America’s citizenry – now losing their jobs and homes.</p>
<p><a href="http://the-wawg-blog.org/?p=1846" rel="nofollow">http://the-wawg-blog.org/?p=1846</a></p>
<p>Freedom Isn’t Free – What Are We Willing to Pay For It?<br />
What are we willing to pay for freedom? How about our fair share of citizenship dues – taxes not unlike those of WWII? I suggest we raise the 33 percent tax rate to 35, let the 35 return to 39.6 percent, and add several more brackets for those making more than $500,000.<br />
<a href="http://the-wawg-blog.org/?p=1963" rel="nofollow">http://the-wawg-blog.org/?p=1963</a></p>
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		<title>By: notabanker</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19877</link>
		<dc:creator>notabanker</dc:creator>
		<pubDate>Mon, 13 Jul 2009 08:35:10 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19877</guid>
		<description>Stop worrying folks.  Uncle Sam will not indeed cannot become bankrupt! With the US$ as global reserve currency even safer!! Why?  Well say some of our Asian buddies want to redeem their treasury paper, Ok we pay them out in what?  Of course, global reserve currency scrip.  Yes, US$&#039;s  HaHaHa.  Come on Beijing man have a dollar, hot off the press and what would you rather have? Printed dollars or interest earning treasury paper?  

Same for all treeasury holders so this is an ironclad, copper-bottomed sure thing, we cannot lose!

Feeling better already?  There, I knew  I could help you have a better day.   

Any other problems? Just let me know.</description>
		<content:encoded><![CDATA[<p>Stop worrying folks.  Uncle Sam will not indeed cannot become bankrupt! With the US$ as global reserve currency even safer!! Why?  Well say some of our Asian buddies want to redeem their treasury paper, Ok we pay them out in what?  Of course, global reserve currency scrip.  Yes, US$&#8217;s  HaHaHa.  Come on Beijing man have a dollar, hot off the press and what would you rather have? Printed dollars or interest earning treasury paper?  </p>
<p>Same for all treeasury holders so this is an ironclad, copper-bottomed sure thing, we cannot lose!</p>
<p>Feeling better already?  There, I knew  I could help you have a better day.   </p>
<p>Any other problems? Just let me know.</p>
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		<title>By: notabanker</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19874</link>
		<dc:creator>notabanker</dc:creator>
		<pubDate>Mon, 13 Jul 2009 07:18:25 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19874</guid>
		<description>Fix the derivatives hangover immediately.  Declare &#039;Force Majeure&#039; and cancel all derivatives!  Why not?  They are only virtual insurance and reality would still exist if the derivatives overlay was stripped away.</description>
		<content:encoded><![CDATA[<p>Fix the derivatives hangover immediately.  Declare &#8216;Force Majeure&#8217; and cancel all derivatives!  Why not?  They are only virtual insurance and reality would still exist if the derivatives overlay was stripped away.</p>
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		<title>By: notabanker</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19872</link>
		<dc:creator>notabanker</dc:creator>
		<pubDate>Mon, 13 Jul 2009 06:47:18 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19872</guid>
		<description>I propose that we increase taxes immediately to give a balanced budget!  Is additional yield required 1 trillion $&#039;s?

Why? All folk will realise reality of the Fed&#039;s spending and will seek to distance themselves from such bureaucratic determination to give our money to the poor bankers.

Also don&#039;t forget to hike state taxes to balance for same effect.

What support can we garner for this eminently sensible solution?</description>
		<content:encoded><![CDATA[<p>I propose that we increase taxes immediately to give a balanced budget!  Is additional yield required 1 trillion $&#8217;s?</p>
<p>Why? All folk will realise reality of the Fed&#8217;s spending and will seek to distance themselves from such bureaucratic determination to give our money to the poor bankers.</p>
<p>Also don&#8217;t forget to hike state taxes to balance for same effect.</p>
<p>What support can we garner for this eminently sensible solution?</p>
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		<title>By: Min</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19753</link>
		<dc:creator>Min</dc:creator>
		<pubDate>Sun, 12 Jul 2009 00:34:07 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19753</guid>
		<description>Paul: &quot;When Social Security began in 1937, lifespans averaged 55 years and the retirement age was set at 65. Now average life expectancy is 78, and we still think people should retire at 65!&quot;

That&#039;s the trouble with averages, they don&#039;t always mean what you might think they do. Life expectancy is greatly affected by child mortality, which has gone down greatly since the 19th century in the developed world. A better statistic would be life expectancy at 20, which his gone up only slightly in the developed world in the past 100 years.

As for the retirement age, the Japanese are right. We should retire at 50. What good are labor saving devices if they don&#039;t save labor?</description>
		<content:encoded><![CDATA[<p>Paul: &#8220;When Social Security began in 1937, lifespans averaged 55 years and the retirement age was set at 65. Now average life expectancy is 78, and we still think people should retire at 65!&#8221;</p>
<p>That&#8217;s the trouble with averages, they don&#8217;t always mean what you might think they do. Life expectancy is greatly affected by child mortality, which has gone down greatly since the 19th century in the developed world. A better statistic would be life expectancy at 20, which his gone up only slightly in the developed world in the past 100 years.</p>
<p>As for the retirement age, the Japanese are right. We should retire at 50. What good are labor saving devices if they don&#8217;t save labor?</p>
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		<title>By: bob h</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19746</link>
		<dc:creator>bob h</dc:creator>
		<pubDate>Sat, 11 Jul 2009 21:47:46 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19746</guid>
		<description>Not to mention that the financial industry owes us a quid pro quo for cleaning up the mess they created and hitting the reset button for them.  A swingeing tax on the overcompensated is the minimum that is due us.</description>
		<content:encoded><![CDATA[<p>Not to mention that the financial industry owes us a quid pro quo for cleaning up the mess they created and hitting the reset button for them.  A swingeing tax on the overcompensated is the minimum that is due us.</p>
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		<title>By: Elvin</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19742</link>
		<dc:creator>Elvin</dc:creator>
		<pubDate>Sat, 11 Jul 2009 17:37:24 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19742</guid>
		<description>It&#039;s not just a financial problem, it&#039;s a demographic problem, as well.  If everybody retires at 62 or 65, the percentage of the population under 62/65 will decline.  Not only are they taxed, they are spending more of their time servicing the older group.  Hardly a recipe for robust growth.

We should raise the age for Social Security to 72 over time.  Phased retirement should be encouraged: work hard until 62 but then wind-down over the next 10 years into less demanding jobs.  

Also, I doubt many senior citizens will be thrown into the streets.  Some are quite wealthy overall and we&#039;ll probably means-test Social Security first.  (All you Progressives should be for that!)  Also, the healthy ones will get a job.  Finally, what about the immediate family helping?  It&#039;s the poor and disabled that have been adandoned by their families that we really need to worry about. 

Countries with large welfare nets may be comfy and cuddly, but they are boring and stagnant, too.  We need dynamic growth to address the problems on this planet, not more welfare.</description>
		<content:encoded><![CDATA[<p>It&#8217;s not just a financial problem, it&#8217;s a demographic problem, as well.  If everybody retires at 62 or 65, the percentage of the population under 62/65 will decline.  Not only are they taxed, they are spending more of their time servicing the older group.  Hardly a recipe for robust growth.</p>
<p>We should raise the age for Social Security to 72 over time.  Phased retirement should be encouraged: work hard until 62 but then wind-down over the next 10 years into less demanding jobs.  </p>
<p>Also, I doubt many senior citizens will be thrown into the streets.  Some are quite wealthy overall and we&#8217;ll probably means-test Social Security first.  (All you Progressives should be for that!)  Also, the healthy ones will get a job.  Finally, what about the immediate family helping?  It&#8217;s the poor and disabled that have been adandoned by their families that we really need to worry about. </p>
<p>Countries with large welfare nets may be comfy and cuddly, but they are boring and stagnant, too.  We need dynamic growth to address the problems on this planet, not more welfare.</p>
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		<title>By: Duski</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19740</link>
		<dc:creator>Duski</dc:creator>
		<pubDate>Sat, 11 Jul 2009 17:16:46 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19740</guid>
		<description>Why are you, middle class, fighting how much the tax should be, while upper class rides with very little taxes (tax heavens, other than salary income)? They have lower effective tax percent everywhere, and most ability to pay taxes without it hurting their lives at all.</description>
		<content:encoded><![CDATA[<p>Why are you, middle class, fighting how much the tax should be, while upper class rides with very little taxes (tax heavens, other than salary income)? They have lower effective tax percent everywhere, and most ability to pay taxes without it hurting their lives at all.</p>
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		<title>By: Paul</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19726</link>
		<dc:creator>Paul</dc:creator>
		<pubDate>Sat, 11 Jul 2009 15:27:29 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19726</guid>
		<description>The &#039;throwing millions the seniors out into the street&quot; is a false choice. 

When Social Security began in 1937, lifespans averaged 55 years and the retirement age was set at 65. Now average life expectancy is 78, and we still think people should retire at 65!

The age where benefits begin should have risen with life expectancy; then Social Security and Medicare would have been much closer to solvency.  Asking those younger than retirement age to pay for a cushy retirement for those not elderly is absurd, but that is what we are doing. 

Both Social Security and Medicare are thoroughly broken without major actuarial  changes.  No amount of new taxes will fix them. New taxes, particularly in this economy, will only throw millions out on the street, and shove this economy off a cliff.

A better question actually would have been &quot; do we really want to throw millions out on the street&quot; to fund  the early retirement of people not really elderly?</description>
		<content:encoded><![CDATA[<p>The &#8216;throwing millions the seniors out into the street&#8221; is a false choice. </p>
<p>When Social Security began in 1937, lifespans averaged 55 years and the retirement age was set at 65. Now average life expectancy is 78, and we still think people should retire at 65!</p>
<p>The age where benefits begin should have risen with life expectancy; then Social Security and Medicare would have been much closer to solvency.  Asking those younger than retirement age to pay for a cushy retirement for those not elderly is absurd, but that is what we are doing. </p>
<p>Both Social Security and Medicare are thoroughly broken without major actuarial  changes.  No amount of new taxes will fix them. New taxes, particularly in this economy, will only throw millions out on the street, and shove this economy off a cliff.</p>
<p>A better question actually would have been &#8221; do we really want to throw millions out on the street&#8221; to fund  the early retirement of people not really elderly?</p>
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		<title>By: Larry G</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19722</link>
		<dc:creator>Larry G</dc:creator>
		<pubDate>Sat, 11 Jul 2009 14:09:20 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19722</guid>
		<description>Sigh... one more reason why tax-deferred retirement accounts may turn out to have been a mirage.</description>
		<content:encoded><![CDATA[<p>Sigh&#8230; one more reason why tax-deferred retirement accounts may turn out to have been a mirage.</p>
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		<title>By: Paul</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19697</link>
		<dc:creator>Paul</dc:creator>
		<pubDate>Sat, 11 Jul 2009 01:49:20 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19697</guid>
		<description>Where to begin?

The  last several  tax cuts going back to at least Prop 13 in California,  increased not decreased revenue. Often increased revenue dramatically.  And the inverse has also shown to be true, higher taxes depress economic  economic activity. It has been shown over the last eleven years the top ten  high tax states have lost on average 1100 people a day combined to low tax states. 

Higher taxes unless they are very regressive will not yield greater revenue. Period. Get over it.

So why are all you people still trying to raise taxes in the worst recession by far since the Depression?</description>
		<content:encoded><![CDATA[<p>Where to begin?</p>
<p>The  last several  tax cuts going back to at least Prop 13 in California,  increased not decreased revenue. Often increased revenue dramatically.  And the inverse has also shown to be true, higher taxes depress economic  economic activity. It has been shown over the last eleven years the top ten  high tax states have lost on average 1100 people a day combined to low tax states. </p>
<p>Higher taxes unless they are very regressive will not yield greater revenue. Period. Get over it.</p>
<p>So why are all you people still trying to raise taxes in the worst recession by far since the Depression?</p>
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		<title>By: Bk</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19693</link>
		<dc:creator>Bk</dc:creator>
		<pubDate>Sat, 11 Jul 2009 00:18:23 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19693</guid>
		<description>Government can find the way to reduce tax burden. For example, FDIC should increase the fee for the banks to cover all costs including capital support and interest cost in the future and this policy or system of loss sharing between banking system will protect the loss of taxpayers and reduce the risks in the financial system. If there is commitment by all financial institutions to support all loses from the failure of the others, it will create the system that protect loss to outsiders like taxpayers and it will also protect every bank to take care themselves not to cause the excessive risk and collapse in the system. Now major banks start to have profit from low interest cost supported by FDIC; therefore, government should build the this kind of system. Surely, it guarantee that all the loss of financial institution will not be the burden of taxpayers, that is good thing.</description>
		<content:encoded><![CDATA[<p>Government can find the way to reduce tax burden. For example, FDIC should increase the fee for the banks to cover all costs including capital support and interest cost in the future and this policy or system of loss sharing between banking system will protect the loss of taxpayers and reduce the risks in the financial system. If there is commitment by all financial institutions to support all loses from the failure of the others, it will create the system that protect loss to outsiders like taxpayers and it will also protect every bank to take care themselves not to cause the excessive risk and collapse in the system. Now major banks start to have profit from low interest cost supported by FDIC; therefore, government should build the this kind of system. Surely, it guarantee that all the loss of financial institution will not be the burden of taxpayers, that is good thing.</p>
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		<title>By: Sonic Charmer</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19691</link>
		<dc:creator>Sonic Charmer</dc:creator>
		<pubDate>Fri, 10 Jul 2009 23:25:02 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19691</guid>
		<description>&lt;i&gt;Unfortunately, that charity was not well organized, as it was, of necessity, ad hoc. The mechanism that we had set up in this country to deal with such emergencies, FEMA, bungled the job.&lt;/i&gt;

Sorry, was this supposed to be an argument that government should be more entrusted with charitable enterprises? As you know FEMA is a government agency.

&lt;i&gt;To meet needs of such proportions we need well-functioning, organized assistance, as well as individual and collective charity. There is no need to set up a false dichotomy.
&lt;/i&gt;

Fair enough, agreed.  It&#039;s a false dichotomy and both are important.

The view that &quot;taxes will have to go up&quot; however precludes (and indeed, actively inhibits) charity from being part of any approach to the issue.  In other words it makes an assumption that the solution lies entirely with government.  So, as you and I agree, that&#039;s a false dichotomy.

&lt;i&gt;Income, capital gains, and estate taxes fall more upon the rich than the rest of us. And that is fair in terms of charity,
&lt;/i&gt;

What do you mean?  Taxes are not &quot;charity&quot;.  The two  terms are mutually exclusive.

&lt;i&gt;the bulk of charity comes from average and even poor people, while the rich do not, as a group, do their part.
&lt;/i&gt;

This is just false.  Or, I guess it could depend on what you mean by &quot;doing their part&quot; but that begs the question.</description>
		<content:encoded><![CDATA[<p><i>Unfortunately, that charity was not well organized, as it was, of necessity, ad hoc. The mechanism that we had set up in this country to deal with such emergencies, FEMA, bungled the job.</i></p>
<p>Sorry, was this supposed to be an argument that government should be more entrusted with charitable enterprises? As you know FEMA is a government agency.</p>
<p><i>To meet needs of such proportions we need well-functioning, organized assistance, as well as individual and collective charity. There is no need to set up a false dichotomy.<br />
</i></p>
<p>Fair enough, agreed.  It&#8217;s a false dichotomy and both are important.</p>
<p>The view that &#8220;taxes will have to go up&#8221; however precludes (and indeed, actively inhibits) charity from being part of any approach to the issue.  In other words it makes an assumption that the solution lies entirely with government.  So, as you and I agree, that&#8217;s a false dichotomy.</p>
<p><i>Income, capital gains, and estate taxes fall more upon the rich than the rest of us. And that is fair in terms of charity,<br />
</i></p>
<p>What do you mean?  Taxes are not &#8220;charity&#8221;.  The two  terms are mutually exclusive.</p>
<p><i>the bulk of charity comes from average and even poor people, while the rich do not, as a group, do their part.<br />
</i></p>
<p>This is just false.  Or, I guess it could depend on what you mean by &#8220;doing their part&#8221; but that begs the question.</p>
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		<title>By: Sonic Charmer</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19690</link>
		<dc:creator>Sonic Charmer</dc:creator>
		<pubDate>Fri, 10 Jul 2009 23:15:21 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19690</guid>
		<description>Meanwhile government services, by contrast, are enough and work perfectly well while being perfectly fiscally sound at the same time.  That&#039;s why this blog post and entire discussion doesn&#039;t exist.

Oh wait.

Anyway, private charity was working better than most people think.  It has been crowded out over time a bit by government, of course - but that&#039;s my point.  How would private charity be doing if 40+% of middle class families&#039; incomes weren&#039;t garnished off the top by the government?

But more to my original point, if you don&#039;t think private charity would be &quot;enough&quot;, to prevent (for example) &quot;millions of seniors being thrown onto the street&quot;, that&#039;s fine.  You might be right, I guess.  But such a view is not consistent with claiming to believe the American people are &quot;decent&quot;.  It is, rather, an opposite view, that they are indecent.

For one thing:  all these &quot;millions of seniors&quot; that are supposedly going to be thrown on the street - where are their families?  Their children?  Their children wouldn&#039;t let them come stay with them in a pinch?  &quot;Sorry we need that room it&#039;s the video game room&quot;?  That&#039;s the point of view being implicitly promulgated here.  Again: right or wrong, it is simply not a view consistent with the American people being &quot;decent&quot;.</description>
		<content:encoded><![CDATA[<p>Meanwhile government services, by contrast, are enough and work perfectly well while being perfectly fiscally sound at the same time.  That&#8217;s why this blog post and entire discussion doesn&#8217;t exist.</p>
<p>Oh wait.</p>
<p>Anyway, private charity was working better than most people think.  It has been crowded out over time a bit by government, of course &#8211; but that&#8217;s my point.  How would private charity be doing if 40+% of middle class families&#8217; incomes weren&#8217;t garnished off the top by the government?</p>
<p>But more to my original point, if you don&#8217;t think private charity would be &#8220;enough&#8221;, to prevent (for example) &#8220;millions of seniors being thrown onto the street&#8221;, that&#8217;s fine.  You might be right, I guess.  But such a view is not consistent with claiming to believe the American people are &#8220;decent&#8221;.  It is, rather, an opposite view, that they are indecent.</p>
<p>For one thing:  all these &#8220;millions of seniors&#8221; that are supposedly going to be thrown on the street &#8211; where are their families?  Their children?  Their children wouldn&#8217;t let them come stay with them in a pinch?  &#8220;Sorry we need that room it&#8217;s the video game room&#8221;?  That&#8217;s the point of view being implicitly promulgated here.  Again: right or wrong, it is simply not a view consistent with the American people being &#8220;decent&#8221;.</p>
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		<title>By: Sonic Charmer</title>
		<link>http://baselinescenario.com/2009/07/10/people-who-think-taxes-will-have-to-go-up/#comment-19689</link>
		<dc:creator>Sonic Charmer</dc:creator>
		<pubDate>Fri, 10 Jul 2009 23:07:09 +0000</pubDate>
		<guid isPermaLink="false">http://baselinescenario.com/?p=4314#comment-19689</guid>
		<description>What about free riders?</description>
		<content:encoded><![CDATA[<p>What about free riders?</p>
]]></content:encoded>
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