Gary Cohn Floats Idea of Gas Tax Hike

Gary Cohn Floats Idea of Gas Tax Hike for Infrastructure - Bloomberg:

.. or, we could skip the tax cut for the rich and pay for infrastructure with that money.

This is the problem with tax cuts. It takes a certain amount of money for government to function so money lost from income tax cuts for the rich has to come from somewhere. That "somewhere" is either increases in the deficits or is collected through other tax increases like the gas tax mentioned here but also could be increases in Social Security and medicare taxes, sin taxes, etc.

Eventually the states feel the crunch of less federal support so have to increase sales taxes, property taxes, etc or cut services like funding for schools, infrastructure, etc.  These taxes are more regressive than Federal income tax so hit the poor and working classes harder and of course state services to the people mostly affect the poor and middle class

So, the rich get richer and the poor get poorer.

Also, if the tax cut is paid for by deficit spending then the next time a D wants to improve a social program the R's will roll out the  "We can't afford that!! Look at the deficit!!!" excuse.

They can't loose.

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