Will 'Tax the Rich' Solve Deficit/Spend. Crisis?

U

UT1986

500+ Posts
Good blog from Charles Hugh Smith.

"If we look at tax revenues and income in a practical way, we find "tax the rich" will not close the widening $1.5 trillion gap between Federal revenues and spending".
The Link
 
It's a problem that is going to have to be worked from both ends. Spending cuts alone can't do it either. Eventually this will be a problem for the middle class.
 
Less money in the governments pockets, the better for the economy, country and world.

Would you prefer the government to have the money or industry, business owners and the american consumer?
 
I've always wondered how and when it became acceptable to borrow money to fund the government. Yes, I do realize that borrowing during times of war or during times of economic downturn might be an appropriate avenue of increasing revenue; however, how did we get to point where the government began to create more and more programs that required borrowing trillions just to pay for them? Seems as if someone, somewhere, would have said, we have X amount of revenue of the next 20 years and Y amount of costs. X is FAR less than Y so maybe we shouldn't create something that can't be paid for.
 
Of course it is a political ploy. But it is an effective one so....

If you look at the numbers, let the Bush tax cuts expire on incomes over say $750,000 (lets the dems claim a victory) institute a 2% national sales tax (gets revenue where it needs to be and lets aeveryone living here have skin in the game) and you would have projected revenue equal to 20% of GDP. That is historically HIGHER than the revenue has averaged throughout the years. Force the govt to live with spending totals of 20% of GDP and the budget can be balanced farily quickly.

We still have to deal with the debt. I would then consider an import tax (small,maybe 1%) that 100% of the receipts go to paying down the debt. If foreign countries match the 1% tax, so be it. Probably take a long time but at least it would be moving in the right direction(getting smaller rather than larger)

I would convert all govt vehicles to an electric/natural gas hybrid over the next 10 years. I would have the govt (via a stimulus) pay to have refueling stations put in nationwide.

I would regulate that semi tractors be converted to natural gas over a 10 year period.

Our dependence on oil (and its tie to our military) would diminish considerably and we could become a net exporter of fuel which would improve our revenues drastically.

Those are not even difficult things to do and I would love to hgere an argument against them.

The effect on the dollar would be fantastic with just the announcement.
 
It's a problem that is going to have to be worked from both ends.
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which means nothing will happen. they got together for a month, found 50 billion to cut and claimed a huge victory. 50 billion will cover a small fraction of our interest payment.
 
"I've always wondered how and when it became acceptable to borrow money to fund the government. Yes, I do realize that borrowing during times of war or during times of economic downturn might be an appropriate avenue of increasing revenue; however, how did we get to point where the government began to create more and more programs that required borrowing trillions just to pay for them? Seems as if someone, somewhere, would have said, we have X amount of revenue of the next 20 years and Y amount of costs. X is FAR less than Y so maybe we shouldn't create something that can't be paid for. "

If the govt. runs out of money, the Fed simply creates money out of thin air with ZIRP. It hasn't worked this time around and will never work. If you or I create money out of thin air, it's called counterfeiting.

At some point, the debt in this country needs to be written off, spending drastically reduced, worthless federal govt. programs eliiminated and the tax structure for citizens, small buisnesses and corporations working in the US totally overhauled or this country will be down the path to serfdom very soon. Trouble is the elite making policy decisions on both the left and right in this country like it the way it is. Hell maybe it will take another revolution like what started this country.
 
I have been shocked to learn that the wealthy think they pay too much in taxes, especially seeing as how they have had much higher rates throughout most of their lifetimes. It just seems odd.

Likewise curious is the fact that people who don't have much think it appropriate for those with more to pay a larger percentage of their incomes to feed the beast.

When I was a kid, I took care of cattle. When it rained a lot and there was a lot of grass, the old man would think how much better things would be if he had more cattle and would finance buying more. If it didn't rain much for a year or two the purchase of the extras seemed much less wise.

When the economy is booming and the revenues go up. everybody in government thinks of new things people who elect them would like to have. They spend more. When the revenue rain goes down for some reason, they don't want to quit spending the money on the new stuff.

When the revenue rains pick up, the gap will close and the current frenzied panic will end.

Until then, the easily frightened will go around screaming about how the world is coming to an end because of the budget deficits, the excessive tax loads and the cuts in government spending. Different folks will be screaming about different parts of the that, depending on whose ox is in the ditch.
 
"You've got October covered."

- Kyle Bass

"Republicans and Democrats are like two golfers, each with 40 foot putts, 20 feet of break and a 20 mph cross wind, who look at each other and say:'Good? Good'."

- Kyle Bass on the collusion between Rs and Ds when it comes to raising taxes and cutting spending
 
What worked under Clinton will work today. cut spending and increase revenues through higher taxation. As the economy continues to recover revenues will also go up from that. Balance the budget, get the troops out of the middle east, and downsize the military.

Just think where we would be today if the Bush administration had not reversed all of this. We had a chance to pay down the debt and no it seems as there is no hope due to the interest rate alone.
 
Just think where we would be today if the Bush administration had not reversed all of this.
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where would be be if 9/11 never happened....that should really blow your mind if you think about it.
 
....and without the Bush Tax cuts revenues would not have increased to record levels.

It is fact and has been proven time and time again that if certain taxes are lowered it increases tax revenues.

The common Liberal will ask how is that so.......well it is called common sense and when the american consumer has more cash in their pockets or the american corporation has more cash in the coffers two things happen. The consumer spends more, hence you have more tax revenue being cycled through the economy. The second thing is when corporations have more after tax income, they grow, expand and hire more people. What happens when they hire more people? Anyone, Anyone?

This has been done by Democrats and Republicans always with positive results.

The problem lies as someone above mentions, when we get extra cash in the coffers, the government feels the need to spend it vs. paying down the debt.

SPENDING is the problem!!!!! The United States Federal Government can run on $2 Trillion dollars, and probably run more efficiently then with over bloated departments and too many employees.

Thank you very much and Good Bye and Good Luck!
 
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