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you forget to take into account that when you raise taxes on the "rich" and businesses, they pass those costs onto everyone who buys their products/services. that means higher prices and that means the middle class and the poor ant buy as much as they used to, which reduces demand,
Supply and demand determines market price, not cost of good produced. For any company in perfect or next to perfect competition, the amount they could raise any price to react to immediate cost would be limited.
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Originally Posted by rbohm
the problem here is that when taxes are cut, revenues to the government increase, not decrease.
During all of Ronnie Rayguns term, tax rates generally stayed the same, it continued through Bush 1, and in to Clintons first term.....but, around 1996, something amazing happened, tax receipts started growing by a great deal. From 1995-2000, Clintons last year, personal income tax receipts almost doubled. You have to go back to 65-69 to find a period as robust.
It could have something to do with the economy growing like gang busters, but really, it had a whole lot to do with Clinton steadily raising taxes.
Then Dubbya took over, and by 2004, we were collecting less revenues than 1998.
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Originally Posted by rbohm
the problem with big government is that it soaks up money that should be in the private sector. keynes knew that his idea of high amounts of government spending were to be short term because that money had to be paid back. keynes also recommended cutting taxes to spur on private sector growth. right now government spends far too much money, and we have racked up huge deficits and debt that is going to be a drain on the economy for some time to come if we dont get government spending under control, and start eliminating the waste in government.
Ironically, a great deal of that "debt" has managed to end up in the pockets of big business
In fact, government contracting with the US accounted for almost 36 billion of its 45.8 billion of total revenue in 2010 for Lockheed Martin. Whats the salary of Lockheeds CEO? 13 million bucks a year. Profits? 2.8 billion dollars a year.
Filtering goverment money through private sources is exactly where the government is going wrong, because the money isnt getting to places where it is directly put back in to the economy, its instead being sat on by corporations, or filtered to wealthy stakeholders and corporate officers, who also are sitting on it, but not to rank and file employees.
In fact, essentially, in Keynesian economics, such bottle necks actually serve to prolong, or even create depressions and recessions.
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Originally Posted by rbohm
1: make the business environment more friendly to business so that investment in this country is encouraged
It is impossible to compete with third world business climates.
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Originally Posted by rbohm
3: we HAVE to get government spending under control, and establish fiscal discipline. and that means REAL spending cut in government spending across the board, not this "we cut the rate of the growth of spending by 20%" crap. that wont cut it anymore.
By this you mean, leave defense, SS and medicare alone, cut education, TANF, medicaid, foodstamps, HUD, etc.
Many, many poor have become wealthy, and many, many wealthy have become poor.
It's YOUR life to live.
Almost no wealthy become poor, if they do fall, its only one income quintile, and very few poor become rich, especially post 1980.
The US has the least amount of economic opportunity in the industrialized world, one of the worst Gini coefficients, and one of the least amounts of economic mobility
In the US, more so than ANY other industrialized nation, the economic quintile you were born in determines where youll end up in as an adult.
When compared globably, the US is actually more on par with what youd expect from a banana republic.
I dont know if that, or the fact that half this country still refuses to acknowledge there is a problem, is more embarrassing.
I keep hearing this mantra from the left that tax cuts, especially those that benefit the rich somehow hurt the poor, as if the poor are dying in the streets because some rich boogeyman's taxes were cut. What I haven't been able to figure out, thus far, is how exactly these tax cuts hurt poor people. So far, I have yet to see any of these mythical corpses out in the streets. Nevertheless, the left keeps beating this mantra to death, tax cuts for the rich hurt the poor. Moreover, how do liberal Democrat policies of seizing all private property and giving it to the ruling class (the richest of the rich) tangibly benefit the poor?
Liberals can't actually be so naive as to believe that the ruling class will act as Robin Hood, can they? Surely they must see that in reality, after seizing privately acquired wealth, the ruling class simply pockets most of it or disperses it amongst their cronies. Very little wealth seized by the ruling is actually given to the poor. The ruling class gives the poor enough breadcrumbs to such that they keep voting them in office, but the majority is kept by the ruling class or given to their ultra wealthy cronies.
If anything, it would seem that tax hikes, especially those on the rich, actually hurt the poor. Don't forget the rich drive the economy. Without a wealthy class, who's going to create or invest in anything? The more the rich are taxed, the less they create, the less they invest, the less they consume, meaning less job opportunities for everyone else. So wouldn't it be in everyone's best interests to let individuals keep more of their privately acquired wealth? That leads me back to my original question... how do tax cuts hurt the poor?
Easy to forget lies because they are harder to keep straight.
Another post by a "conservative" who sees better than lobotomized liberals. Great, you can feed yourself. Doesn't mean you get it.
Why do people think tax cuts for the wealthy hurt the poor? Perhaps I think your sister is an imbecile, and I think intelligence is genetic. Perhaps you will get that implication?
*Da guberment budget out of balance implies the usual calls for spending cuts to balance it again. That puts benefits aimed at the poor on the table, again.
* How about something a bit more sophisticated like big deficits just meaning more debt which the rich buy up. Tax relief that just goes into da guberment debt has one difference, its debt rather than tax revenue. Now people should know by now I have no problem with da guberment debt per se, but only if it were widely distributed among the classes. However in the case of a big fat tax cut, the wealthy just roll it into treasuries. Where did that get us? More deficits indebted to the wealthy. Back to austerity for the poor again.
*Then we have relative spending power. If I have to compete with another buyer who got a big tax cut, I gotta pay more. If its rent oriented, then its a verifiable loss of buying power against the class who had no tax cut.
*lastly the budget crunch in the lower classes is now, more and more, interest on private bank debt and rent, not taxes. That why tax relief did not help them either. You get $100 tax relief and then pay $200 more in rent. How wonderful. It will not stimulate anything until we have productive loans.
But hey Mr schmarty conservative who can balance his check book thinking its his resume to run the World Bank, you are still more clear headed than a motor voter. I'll give you that. Still utterly and hopelessly confused, but in a far more refined system of intellectual swindle.
That 10% impacts the $20K/year worker's ability to keep a roof over his/her head and food on his/her table FAR more than it does the $100K/year worker.
They hurt the poor because along with those tax cuts the cons want to raise taxes on the poor
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I live in a van part of the year and on a little funky boat part of the year.
