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dgoz said...
My best guess is that Obama wants to raise taxes on wealthier individuals not because of revenue alone, but perhaps to suppress much of the speculative activity fueling the financial sector. Wealthy people aren't the spenders which drive the production of real goods and services. What you hear in the media is not necessarily the real story or the real strategy, but how it's played out in the political arena and what emotion it creates amongst the population. Just a thought..
Leppycole
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rms02d
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rms02d said...
This isn't factual
Everybody who works in America is paying to Fund Medicare, Medicaid, and Social Security. Thats half of the US budget.
However, 30-40% of Americans aren't paying anything on deficit interest, defense, and discretionary spending.
People who don't pay Income tax, still pay SS. Medicare, and Medicaid withdrawals.
NLeininger
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NLeininger said...
and a good portion of those that don't pay to fund everything minus the entitlements get money back via the EIC. So not only do they get food stamps, phones, gas, and homes, but also cash.
"A political call, the fall guy accord...We can't afford to be neutral on a moving train..."
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BamaLivesFootba said...
If you get welfare, you can't get the EITC. If you make jack shit and want to live in subsidized (not entirely free) housing and get subsidized (not entirely free) phone service and get food stamps, then go do it dude.
The EITC isn't controversial. That is if you aren't right right of Reagan or Friedman. Lol.
NLeininger
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dgoz said...
WADR, it doesn't work like that. The government has a planned amount of outlays, roughly 3.8 trillion per year and has been holding steady last few years. So, it spends money into the economy based on forecast overall size of the economy, roughly 20% of GDP. Then, depending on wages, and consumer and business spending that is occurring, a certain % is returned in taxes. The deficit is nothing more than the money saved in the private sector, beyond what was taxed. So, the deficit is money that households, businesses, banks are saving. Each year the private sector saves, which is the deficit, and the accumulated amount of deficits overtime is the debt. Government debt is an equal amount of net private sector savings overtime. We rarely ever achieve a government surplus, and it is not the goal. Whatever amount the annual deficit is, we tend to issue securities in an equal amount so that individuals, corporations, and various other individuals can safely park their extra cash into. This is mainly done as a means to control inflation and/or interest rates. So, we are experiencing high deficits right now, not due to extreme government spending, but because of a financial crisis which caused consumers and businesses to slow spending. Households are deleveraging from underwater mortgages etc. Wages are lower and thus, less taxes returned. If you raise taxes on people trying to spend, then you just make the problem worse. Make sense?
Go Vols
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i801568
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dgoz said...
WADR, it doesn't work like that. The government has a planned amount of outlays, roughly 3.8 trillion per year and has been holding steady last few years. So, it spends money into the economy based on forecast overall size of the economy, roughly 20% of GDP. Then, depending on wages, and consumer and business spending that is occurring, a certain % is returned in taxes. The deficit is nothing more than the money saved in the private sector, beyond what was taxed. So, the deficit is money that households, businesses, banks are saving. Each year the private sector saves, which is the deficit, and the accumulated amount of deficits overtime is the debt. Government debt is an equal amount of net private sector savings overtime. We rarely ever achieve a government surplus, and it is not the goal. Whatever amount the annual deficit is, we tend to issue securities in an equal amount so that individuals, corporations, and various other individuals can safely park their extra cash into. This is mainly done as a means to control inflation and/or interest rates. So, we are experiencing high deficits right now, not due to extreme government spending, but because of a financial crisis which caused consumers and businesses to slow spending. Households are deleveraging from underwater mortgages etc. Wages are lower and thus, less taxes returned. If you raise taxes on people trying to spend, then you just make the problem worse. Make sense?
We are ND
condoms USuCk
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condoms USuCk
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fat x nub
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fat x nub said...
You understand the economy, but for the love of God please make your way to a finance class.
You are saying that it is ok for the government to run deficits because it saves the private sector money, but wouldn't it be easier to just save the private sector the money with lower taxes? Why run these deficits to save the private sector money, when you can save them money at the very beginning with lower taxes?
I promise, Wal-Mart would rather take a tax break than thank the government for "private sector saving." Let me guess, the internet, the roads, the transportation services..."you (the business owner) didn't build that."
If you called the CEO's of Fortune 500 companies and explained to them that their taxes were really their savings...they would punch you in the effing face.
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TroyTide said...
He is basically saying that the deficit is money spent that the government could have taxed you for but didn't. So therefore since they didn't tax you for it it was money they saved you. It's a very screwed up way of looking at things. It also ignores that eventually they will have to tax you for it to pay back the money they borrowed to "save" for you in the first place.
It's like saying I could have punched you in the face and took $100 from you, but since I didn't and I went to the bank and borrowed the $100 instead I just saved you $100 dollars. Lol.
RIP Lil Julio
fat x nub
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fat x nub said...
You understand the economy, but for the love of God please make your way to a finance class.
You are saying that it is ok for the government to run deficits because it saves the private sector money, but wouldn't it be easier to just save the private sector the money with lower taxes? Why run these deficits to save the private sector money, when you can save them money at the very beginning with lower taxes?
I promise, Wal-Mart would rather take a tax break than thank the government for "private sector saving." Let me guess, the internet, the roads, the transportation services..."you (the business owner) didn't build that."
If you called the CEO's of Fortune 500 companies and explained to them that their taxes were really their savings...they would punch you in the effing face.
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fat x nub
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TroyTide said...
He is basically saying that the deficit is money spent that the government could have taxed you for but didn't. So therefore since they didn't tax you for it it was money they saved you. It's a very screwed up way of looking at things. It also ignores that eventually they will have to tax you for it to pay back the money they borrowed to "save" for you in the first place.
It's like saying I could have punched you in the face and took $100 from you, but since I didn't and I went to the bank and borrowed the $100 instead I just saved you $100 dollars. Lol.
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NLeininger
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Govt budget question?