Saturday, December 10, 2011

A debate over a Kyle Bass interview

Cameron and I are jousting again. 
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This time the fodder is an hour-long interview with hedge fund manager, Kyle Bass which Cameron and I both viewed with great interest.  Taped last month, I encourage you to view it too.
Cameron writes,
John, I watched that video, thank you for forwarding it. It was very insightful. There were a lot of things that really popped out but one especially. Bass states that Washington has a spending problem, but in the same breath he states that the solution is simple. He states we need to raise revenues 2 1/2% and reduce expenses by 5%.   
Which is exactly what I wish Washington would do, but the Republicans stance against no new taxes and no compromise on that issue is hardly going to get that accomplished.”
My reply to Cameron...

Note that the spending reduction Mr. Bass calls for is two times the tax increase he calls for.  Perhaps that’s because giving (additional) revenue to the federal government is like tossing it in the ocean.  Politically, raising some taxes might be an expedient way to get a budget bill past the Dems in order to ultimately net a much larger reduction in spending, but we don’t raise taxes because it is morally appealing, or because we think it's a prudent way to help the disadvantaged.
I hope to visit Cameron while I'm in Texas during the holidays.  At this time, I'd also like to wish all six readers of this blog a Merry Christmas.
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