Quote:
Originally Posted by spence
The deficit did hit 1.5 trillion in 2010 but is shrinking and projected to be about 1/2 as big in a few years. 90 Billion out of $750 B is quite a lot of money, especially when you add up the cumulative impact.
Higher tax rates during a given year will absolutely result in increased tax revenue...every time.
To keep taxes low on the "hope" that the economy improves will quite possibly just saddle Americans with more debt. Don't forget that keeping taxes low during a deficit is actually increased SPENDING.
If the Bush tax cuts proved anything it's that investment in jobs the past decade was more a function of demand than supply.
-spence
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Spence, let's say the annual deficit decreases to $750B in a few years. The total debt in a few years will be north of $20 trillion, and when you factorin Social Security and Medicare, we needt at least $50 trillion. Spence, PLEASE tell me how we raise a significant portion of that by raising tax rates.
"Higher tax rates during a given year will absolutely result in increased tax revenue...every time. "
Spence, are you seriously saying that tax revenues collected would be maximized at tax rates of 100%? Really?
Earth to Spence...the largest tax revenues we ever collected were in the years immediately following the Bush tax cuts? Spence, how can that be? Answer...the growth in the economy more than offset the cut in rates. THAT'S how you do it. Grow the base, not reduce people's after-tax take home pay.
"Don't forget that keeping taxes low during a deficit is actually increased SPENDING."
It's also increased freedom, because the spending is voluntary. I'm all for increased consumer spending, if that's what people freely choose to do. I don't want my taxes increased to give paybacks to businesses like Solyndra that are politically well-connected. I thought the OWS morons were opposed to that type of crony-capitalism, but for some reason, it's OK when liberals payoff their supporters.
You are more inane than usual, Spence. Raising rax rates will not always increase revenue, just like raising prices doesn't always generate more revenue for a business. At some point, you cost yourself out of the market. Page 1 of every economics text says that when you increase the cost of something (including wealth), the demand for that something will decrease. We need to find the sweet spot...raising rates isn't always a goo dthing, just like raising prices isn't always a good thing. At least not here on Earth, where I live.