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Well, there is nothing in what Krugman writes that I read as being against tax increases for the ultra-righ.
That would not change their spending (at any rate not reduce it -they may be tempted to spend more in things that have a tax savind attached) and therefore not reduce demand.

I read Krugman as saying that it's the wrong time to be careful and reduce the demand of the 80% of the population that consumes everything they earn and more.

But we know that in the case of USA, it's on the wealthy that the tax increase should go -they pay a lower rate than the median earners...

Earth provides enough to satisfy every man's need, but not every man's greed. Gandhi

by Cyrille (cyrillev domain yahoo.fr) on Thu Jan 1st, 2009 at 08:11:46 AM EST
[ Parent ]
Taxes should be levied on the wealth of the rich, specifically by taxing the privilege inherent in exclusive property rights over Commons.

"Any economic unit can emit money. The serious problem is to get it accepted" Hyman Minsky
by ChrisCook (cojockathotmaildotcom) on Thu Jan 1st, 2009 at 08:22:10 AM EST
[ Parent ]
The problem with Krugman is that he operates within an Overton Window where tax hikes are distilled political death. And half the time he doesn't even strike me as considering this particularly problematic.

- Jake

If you only spend 20 minutes of the rest of your life on economics, go spend them here.

by JakeS (JangoSierra 'at' gmail 'dot' com) on Fri Jan 2nd, 2009 at 06:01:19 AM EST
[ Parent ]
Krugman clearly wants higher taxes for high incomes. Just read his great book The Conscience of a Liberal.

Peak oil is not an energy crisis. It is a liquid fuel crisis.
by Starvid (arvid.hallen at gmail.com) on Fri Jan 2nd, 2009 at 06:15:37 AM EST
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