Quote:
The battle will be over how to get the economy's winners to pay for an increasingly costly poor. Last weekend Treasury Secretary Timothy Geithner and Lawrence Summers, the director of the White House's National Economic Council, refused to rule out raising taxes. Despite the White House's subsequent denials, this may be an early acknowledgment of an inexorable trend. In a future with higher taxes, the divide between rich and poor would be the central economic challenge. …
So, how do we operate a society in which a large share of the population is socially needy but economically redundant? There is only one answer. You tax the winners — those with the still uniquely human skills, and those owning the capital and land — to provide for the losers. …
The last great hope may be to design a more efficient tax system. … Unfortunately, such measures are only stopgaps. In the end, we may be forced to learn to live in a United States where, by stealth, “from each according to his ability, to each according to his need” becomes the guiding principle of government — or else confront growing, unattended poverty