On Sat, Sep 8, 2012 at 9:26 AM, Haim > Do you want to know why American cities are actually going bankrupt? >
They simply are not taking in enough revenue to cover the cost of doing business.
Government should be run like a business in this way: Since self-respecting businesspersons are always trying to increase the revenues of their business, those who run government should always be trying to increase revenues of government.
One way is to increase tax rates.
Another way is to increase the growth of the economy that is taxed.
And yes, we can have both of the above since we can point to countless examples in the world where both have occurred.
Yet another way is to do what countries like Norway and China do - buy dividend paying stock in publicly traded corporations, enough to control those corporations. (The governments of these countries I mentioned in this way control about 1/3 of all publicly traded corporations in their respective countries.) Since corporations so many times pay out revenue sharing to stock holders, why not have some that money go to government? Like in these countries I mentioned, it would keep taxes from being as high as they otherwise would have to be for government revenue to get to the same percentage of GDP.