Comments for Bob Pozen http://bobpozen.com Fri, 23 Dec 2011 16:42:11 +0000 hourly 1 http://wordpress.org/?v=3.2.1 Comment on The payroll tax showdown by Joe Seydl http://bobpozen.com/2011/12/the-payroll-tax-showdown/comment-page-1/#comment-873 Joe Seydl Fri, 23 Dec 2011 16:42:11 +0000 http://bobpozen.com/?p=1781#comment-873 It is pretty ridiculous that we seemingly run into another political impasse every two months. How is a business expected to plan and invest when it doesn't know what our country's tax policy will look like two months from now? I like your go-big-or-go-home $5 trillion plan. But let's remember that the longer-term budget problem is primarily driven by our broken healthcare system. If we paid the same amount per person for health care as people in other wealthy countries pay, then we would face no long-term deficit problem, as the long-term projections would show budget surpluses rather than deficits. What I'm basically saying is that it would be tough to get $5 trillion in deficit reduction over the next decade without slashing things, such as Social Securitiy, which aren't necessarily contributing to our longer-term deficit problem and which are overwhelmingly popular among the American people. As you note, though, whatever approach we take must be balanced. Yes, we need more revenue in the form of modestly higher taxes or a broader tax base, but we also need to restructure some of these generous defined benefit pension programs in the federal sector. A lot of these programs were structured off the assumption that the economy would grow 3 to 4 percent per year forever, when the reality that we need to come to grips with is that the economy will likely remain in this sluggish 1.5 to 2.5 percent growth pace for some time. I know it doesn't sound like a whole lot in percentage point terms, but it makes a big revenue difference when compounded over many years. But we'll see what happens. I hope our leaders can eventually resolve their ideological differences and start making some compromises! It is pretty ridiculous that we seemingly run into another political impasse every two months. How is a business expected to plan and invest when it doesn’t know what our country’s tax policy will look like two months from now? I like your go-big-or-go-home $5 trillion plan. But let’s remember that the longer-term budget problem is primarily driven by our broken healthcare system. If we paid the same amount per person for health care as people in other wealthy countries pay, then we would face no long-term deficit problem, as the long-term projections would show budget surpluses rather than deficits. What I’m basically saying is that it would be tough to get $5 trillion in deficit reduction over the next decade without slashing things, such as Social Securitiy, which aren’t necessarily contributing to our longer-term deficit problem and which are overwhelmingly popular among the American people.

As you note, though, whatever approach we take must be balanced. Yes, we need more revenue in the form of modestly higher taxes or a broader tax base, but we also need to restructure some of these generous defined benefit pension programs in the federal sector. A lot of these programs were structured off the assumption that the economy would grow 3 to 4 percent per year forever, when the reality that we need to come to grips with is that the economy will likely remain in this sluggish 1.5 to 2.5 percent growth pace for some time. I know it doesn’t sound like a whole lot in percentage point terms, but it makes a big revenue difference when compounded over many years.

But we’ll see what happens. I hope our leaders can eventually resolve their ideological differences and start making some compromises!

]]> Comment on More challenges for the Brussels pact by Lee Kravitz http://bobpozen.com/2011/12/more-challenges-for-the-brussels-pact/comment-page-1/#comment-872 Lee Kravitz Thu, 22 Dec 2011 17:42:43 +0000 http://bobpozen.com/?p=1773#comment-872 Mr. Pozen What do you see the eventual outcome of this to be? Do you feel that the EU will disband completely or will it stratify into different classes? I'm also interested in your opinion on how the Eurozone crisis affects the BRIC's, especially Latin America and Brazil. Thank You. Mr. Pozen

What do you see the eventual outcome of this to be?

Do you feel that the EU will disband completely or will it stratify into different classes?

I’m also interested in your opinion on how the Eurozone crisis affects the BRIC’s, especially Latin America and Brazil.

Thank You.

]]> Comment on Mortgage refinancing: Will it really stimulate the economy? by Barbara http://bobpozen.com/2011/11/mortgage-refinancing-will-it-really-stimulate-the-economy/comment-page-1/#comment-809 Barbara Mon, 14 Nov 2011 04:08:50 +0000 http://bobpozen.com/?p=1727#comment-809 Help is needed for all homeowners underwater who's mortgage is not backed by Fannie Mae or Freddie Mac. Help is needed for all homeowners underwater who’s mortgage is not backed by Fannie Mae or Freddie Mac.

]]> Comment on Two policies using immigration to boost investment by John Van Slyke Jr. http://bobpozen.com/2011/10/two-policies-using-immigration-to-boost-investment/comment-page-1/#comment-780 John Van Slyke Jr. Thu, 27 Oct 2011 22:00:43 +0000 http://bobpozen.com/?p=1705#comment-780 Yo Bob, I am less concerned about forcing immigrants to put skin in the game. BTW, 500,000 just for a owner-occupied residence is a non starter for people who come to this country with little or nothing. Some my students at HBS were in this category, as I am sure some of yours are too. I am interested in capturing for this country the ideas that sprng from brainpower. These are the precious commodity. People new to our system must have an oppounity to succeed. The simple numbers of human existence in the US tell me that putting a high ante on the game discourages initiative. Better to focus all possible resources on the results we need, including ideas and research that leads to the next great thing. Yo Bob,

I am less concerned about forcing immigrants to put skin in the game. BTW, 500,000 just for a owner-occupied residence is a non starter for people who come to this country with little or nothing. Some my students at HBS were in this category, as I am sure some of yours are too.

I am interested in capturing for this country the ideas that sprng from brainpower. These are the precious commodity. People new to our system must have an oppounity to succeed. The simple numbers of human existence in the US tell me that putting a high ante on the game discourages initiative.

Better to focus all possible resources on the results we need, including ideas and research that leads to the next great thing.

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