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Tax hikes will kill the 'recovery' which isn't real anyway..AGREE? DISAGREE?

The following is an interesting take by an expert in the field. I wonder what folks have to say about it...experts and none experts alike

John Mauldin: Tax Hikes Will Kill the 'Recovery’, Which Isn’t Real Anyway

Posted Oct 21, 2009 07:30am EDT by Aaron Task in Newsmakers, Recession

The economic recovery currently underway is a statistical mirage, based on easy year-over-year comparisons and inventory rebuilding, John Mauldin, president of Millennium Wave Securities, tells Henry in the accompanying video.

Answer Question

Asked by tnmomofive at 4:17 PM on Oct. 21, 2009 in Politics & Current Events

Level 32 (56,190 Credits)
Answers (12)
  • The unemployment rate is closer to 12% when you include people who've been dropped from the survey and the "underemployment" rate - people working part-time vs. full time - is 17% to 18%, "and rising," Mauldin says. "That doesn't feel like recovery."

    Mauldin, who writes the popular Thoughts from the Frontline e-letter, predicts the U.S. economy will be back in recession next year because of higher taxes, both new and with the expiration of the Bush tax cuts.

    "The Obama administration [and] the Democrats aren't going to be able to help themselves," he says. "The deficits are going to be running so high they'll feel - politically -- the need to do something. The way they want to solve it -- instead of cutting spending is to increase the revenue. That's going to suck a lot of air out of the room."


    Answer by tnmomofive at 4:18 PM on Oct. 21, 2009

  • As for the long-term, Mauldin worries America could repeat Japan's experience of a lost decade (or two), if not the Great Depression itself, citing the risk of policy errors such as trying to solve a debt crisis by issuing more debt.


    Answer by tnmomofive at 4:19 PM on Oct. 21, 2009

  • I agree. Tax increases will only hurt the economy more.

    Answer by mancosmomma at 4:50 PM on Oct. 21, 2009

  • I agree with both elements. Tax hikes will kill any chance of recovery, and I also believe that the recovery that they are claiming is manufactured and erroneous. I wish they had just done nothing and let the free markets determine failures. Oh well.....


    Answer by QuinnMae at 5:37 PM on Oct. 21, 2009

  • Taxes are never the answer... just makes a bigger problem. I hate how they don't include those who got knocked out of full time positions to part time as job loss. I think if you lose your current position and it effects your income negatively it should count.

    Answer by Crissy1213 at 5:52 PM on Oct. 21, 2009

  • I agree, our wonderful Michigan governor wants to raise taxes as well. When will those idiots ever learn?

    Answer by Carpy at 5:59 PM on Oct. 21, 2009

  • I agree as well.

    Answer by TBandNCmommy at 6:18 PM on Oct. 21, 2009

  • I am wondering how ANYONE could even imagine that tax hikes would NOT crush prosperity ?!

    I mean, it hasn't worked SO far ... and in what magical-thinking scenario could it help??

    Answer by waldorfmom at 6:32 PM on Oct. 21, 2009

  • You can't have it both ways, either it IS a recovery or it isn't....

    For your theory about taxes to be discussed, you must pick a side


    Answer by sweet-a-kins at 6:33 PM on Oct. 21, 2009

  • Doubtful. When we hike taxes of the smallest percentages of American's with the largest collection of wealth, it doesn't really create economic downfall that conservatives tout. On the flip side of that, when we cut taxes for the second smallest percentage of American's below the poverty line, it doesn't ease or raise them from poverty.

    So now, if we were smart, we would extend tax breaks to middle America and Small Business owners (oh wait, they are in the same brackets) and then put a flat tax on business. We could get somewhere. :)

    Answer by urkiddingright at 7:19 PM on Oct. 21, 2009

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