In 1932, Congress tried to pass a new tax since government funds were all drying up. There was a Washington consensus around a sales tax. But the people said no, and the Members of Congress rebelled against their leaders to reject the proposal. A few months later, they passed a progressive income tax which helped build the largest middle class the world has evern know.
Now, with the defeat of an investment bank windfall bailout, what's the progressive opportunity?
A transaction tax to pay for Wall Street abuse, past and future?
Re-regulation to finally end the failed Reagan Revolution of anti-government government?
It's a good post, but more importantly, a good reminder that we must demand more from our government than a stupid massive bailout of stupid investment bankers with our money.