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Old 05-07-2012, 09:34 AM
 
Location: Charlotte
12,646 posts, read 13,917,932 times
Reputation: 1679

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Thanks to the Tax Foundation and other sources, we've analyzed tax rates over the past century, along with government revenue and spending over the same period.

This analysis revealed a lot of surprising conclusions, including the following:

Quote:
Today's government spending levels are indeed too high, at least relative to the average level of tax revenue the government has generated over the past 60 years. Unless Americans are willing to radically increase the amount of taxes they pay relative to GDP, government spending must eventually be cut.

Today's income tax rates are strikingly low relative to the rates of the past century, especially for rich people. For most of the century, including some boom times, top-bracket income tax rates were much higher than they are today.

Contrary to what Republicans would have you believe, super-high tax rates on rich people do not appear to hurt the economy or make people lazy: During the 1950s and early 1960s, the top bracket income tax rate was over 90%--and the economy, middle-class, and stock market boomed.

Super-low tax rates on rich people also appear to be correlated with unsustainable sugar highs in the economy--brief, enjoyable booms followed by protracted busts. They also appear to be correlated with very high inequality. (For example, see the 1920s and now).
Source
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Old 05-07-2012, 09:36 AM
 
Location: Londonderry, NH
41,492 posts, read 51,379,395 times
Reputation: 24613
When taxes shift sequestered money into general circulation the economy prospers.
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Old 05-07-2012, 09:39 AM
 
32,465 posts, read 26,332,322 times
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yeah, the problem with using the 50s and 60s as support for higher taxes today ignores the fact that todays economy is global in scope, and that the US has direct competition in the world now, where as up until the mid 70s the US was THE manufacturing base for the world for nearly everything. that is not true today.
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Old 05-07-2012, 09:53 AM
 
Location: Londonderry, NH
41,492 posts, read 51,379,395 times
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The unfair advantage of overseas manufacturing using slave labor can and should be mitigated with countervailing tariffs. Why should we tolerate China's 25% import tariff while we have none of our own. The proper response to a tariff is to make yours the same or larger.

Even if tariffs were eliminated we still need one to negate the unsafe and underpaid advantage of third world countries' lower labor costs. For instance we have enough workforces to make our own textiles and cloths and should do so. Same applies to much of the rest of the junk sold in Wally Word.

We could also put a time limit on Investemnt Tax breaks by requiring all investment income considerd as capital gains has to be from investments held for over 2 years. That would effectivly wipe out the cancer of speculation from the market.
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Old 05-07-2012, 10:21 AM
 
2,085 posts, read 1,370,694 times
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While the top bracket was 90% at one point, nobody paid anywhere near that amount. At the time, there were far more deductions and loopholes available, which were eventually phased out as those top tax rates decreased.

The economy in the 50's boomed because we had just exited a war that set back the economies and infrastructure of Europe and Japan while the US was positioned perfectly to emerge as a global economic powerhouse.
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Old 05-07-2012, 11:00 AM
 
Location: OH->FL->NJ
9,950 posts, read 8,081,025 times
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Low rates for the rich should help the venture capitalist side while giving nothing special to the rent seeking side. Currently we coddle all rich with the cap gains rate.

It is true that the rich are much of the job creators but the inverse is NOT true. This is like arguing that all NBA players are men therefore all men are NBA players.

The venture capitalist rich deserve even better tax breaks. The rent seekers, the majority of the rich, deserve no special treatment.
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Old 05-07-2012, 11:09 AM
 
Location: somewhere in the woods
16,884 posts, read 13,035,946 times
Reputation: 5211
Quote:
Originally Posted by walidm View Post
Thanks to the Tax Foundation and other sources, we've analyzed tax rates over the past century, along with government revenue and spending over the same period.

This analysis revealed a lot of surprising conclusions, including the following:

Source

I can tell you that no taxes helps the economy more than more taxes do.
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Old 05-07-2012, 11:14 AM
 
Location: Stillwater, Oklahoma
14,974 posts, read 13,335,302 times
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Quote:
Originally Posted by monkeywrenching View Post
I can tell you that no taxes helps the economy more than more taxes do.
Oh, really? Can you cite a country that did well for its people even though the people were not taxed? Further, it seems cutting taxes just leads to woe as in a recession.
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Old 05-07-2012, 11:17 AM
 
Location: somewhere in the woods
16,884 posts, read 13,035,946 times
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Quote:
Originally Posted by StillwaterTownie View Post
Oh, really? Can you cite a country that did well for its people even though the people were not taxed?

why of course, the USA before 1913.

the amount of liberty and freedom was great before the federal goverment decided to become a nanny state and destroy the peoples lives that they were supposed to be serving in the 1st place.
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Old 05-07-2012, 11:26 AM
 
9,857 posts, read 7,027,687 times
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With the higher tax rates before you also had massive amounts of deductions allowing you to write your life off. So in effect you had a lower tax rate.

Today the government wants to be like a Theocracy that wants to point out one class of people as a problem rather than clean their own house.

In the end this weakens our country, standard of living and we will be a nation with few people doing anything.
Why should people excel, do lots of hard work and have all these employees if you are sued and the money is mostly confiscated back to a bloated out of control government.
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