Quote:
Originally Posted by zimmy
The math is much more complicated than your simple examples. When the economy grows, the budget deficit decreases. The Bush tax cuts did not help the economy. Tax revenues decreased, the economy tanked, defense spending exploded. Would you be in favor of a 48% rate like Norway? Maybe on people over 500000? Budgets could be balanced. Balanced budgets help confidence in the economy. The economy grows increasing revenues.
You are missing a huge piece of the economics in your discussion. Those kinds of statements incite people, but they do not represent the realities of our economy.
|
"The Bush tax cuts did not help the economy. Tax revenues decreased"
I'm pretty sure that tax revenues increased for the first few years after the Bush tax cuts, until the economy imploded?
This link seems to support my theory, and disprove yours...
Historical Federal Receipt and Outlay Summary
"Would you be in favor of a 48% rate like Norway?"
If we absolutely needed it to survive, yes. If we need it to allow cops to continue to retire at age 40, then hell no.
"Balanced budgets help confidence in the economy. The economy grows increasing revenues. "
I agree. BUt we can't balance our particular budget without massive cuts. Do the math, we have $14 trillion in debt, expected to grow by another $10 trillion in 10 years, and that doesn't count the expected shortfall for Social Security and Medicaid. That could be another $60 trillion easy, for a total estimated shortfall of, let's say, $85 trillion. There are 300 million people in this country. To "grow" out of that debt, as you suggest, would mean additional tax revenue of $283,000 per person (I'm a math guy).
I would love to have my income increase to the point where I'm taxed at an additional $1.4 milion for my family of 5. But unfortunately, it ain't gonna happen unless I win Powerball. Is that what the liberals are expecting? That we will all win Powerball? Because that is one of the very few things that would explain how liberals can possibly believe what they claim to believe.
Tell me where I'm wrong, please...And I'm also ignoring the fact that we have to pay interest on our debt, so teh situation is actually much more dire than even I just described...I'm also ignoring that a huge number of "poor" people pay no taxes at all, so that $85 trillion (plus interest) has to be absorbed by far fewer than 300 million people.
"You are missing a huge piece of the economics "
I don't believe so. You are. Because liberals assume that if you raise taxes by X percent, that you'll automatically increase revenue by the same X%. You ignore the de-stimulative effect of raising prices. Conversely, you ignore the stimulative effect of tax cuts (if they are smart tax cuts).
Detbuch, I will try to contain my use of hyperbole.