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Old 05-17-2017, 02:38 PM
 
45,318 posts, read 26,891,951 times
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Quote:
Originally Posted by djmilf View Post
I respect that Senator McConnell is cognizant of the need to shrink the deficit. I'd be impressed if he came up with a solution that helped decrease the outstanding debt.

However, I disagree with making tax cuts deficit neutral by cutting income taxes mostly for the upper income earners while raising consumer prices for the middle and lower income earners. Things like tariffs, value added taxes, and sales taxes are highly regressive - they lay heaviest on those who spend the greatest amount of their income on goods and services.
One - we have to realize the the upper income earners pay the majority of the taxes, so yes, they are going to get the majority of the cut benefits. Aside from the envy that people express - what if it helps? Tax cuts usually bring in more revenue... however, deficits are a function of revenue and spending.

Two - I think Trump - by looking at taxing imports, is hoping to get companies to make their products here - which would employ more people and hopefully expand the pool of people paying into the system, which is a good thing.
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Old 05-17-2017, 02:41 PM
 
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Quote:
Originally Posted by DRob4JC View Post
Tax cuts usually bring in more revenue.
Is that a typo?
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Old 05-17-2017, 02:48 PM
 
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Originally Posted by sware2cod View Post
Is that a typo?
No... not a typo. Do you understand the process of creating tax revenue?
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Old 05-17-2017, 02:55 PM
 
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Tax cuts have gotten us in trouble every time. Part of the problem is that we elect rich people to Congress and now we got a billionaire in the WH. Stupid voters do stupid things.
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Old 05-17-2017, 02:56 PM
 
Location: Secure Bunker
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If it were up to Mitch "Turtle Face" McConnell there would be no tax cuts at all. They guy is a total RINO weasel.
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Old 05-17-2017, 02:59 PM
 
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Quote:
Originally Posted by SoloforLife View Post
Tax cuts have gotten us in trouble every time. Part of the problem is that we elect rich people to Congress and now we got a billionaire in the WH. Stupid voters do stupid things.
If you have an economic policy that stifles production and employment (like Obama did), and tax cuts are enacted - then yeah, that can be a problem.

With the estimated growth for the quarter to be around 4%, which it hasn't been that high for awhile, things are trending up for now.
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Old 05-17-2017, 02:59 PM
 
Location: Secure Bunker
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Quote:
Originally Posted by DRob4JC View Post
No... not a typo. Do you understand the process of creating tax revenue?
Exactly. Federal tax revenues are less a function of tax rates than economic activity. If taxes are lowered it usually encourages more economic activity and tax revenues often increase. It's happened before.
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Old 05-17-2017, 03:10 PM
 
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"Trickle down" cultists are still around.

Last edited by SoloforLife; 05-17-2017 at 03:10 PM.. Reason: punctuation
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Old 05-17-2017, 03:23 PM
 
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Quote:
Originally Posted by Tyster View Post
Exactly. Federal tax revenues are less a function of tax rates than economic activity. If taxes are lowered it usually encourages more economic activity and tax revenues often increase. It's happened before.
Absolutely.


Quote:
Originally Posted by SoloforLife View Post
"Trickle down" cultists are still around.
I refer to it as the velocity of money.

Let me explain it real quick.

Tax revenue is created whenever money changes hands legally. When an employer pays an employee, money changes hands and taxes are removed. When the employee buys food, or a car, or a house, or a computer, money changes hands and taxes are removed.

The more you can get that to happen, the more tax revenue is generated. So you have to put the money in the hands of the public to generate tax revenue.

Now you can't make the taxes too low, because at some point spending maxes out and the lower percentage can not encourage more spending - since is has maxed out. But where we are now - we need to get more money in the hands of the people. Almost half of the country is not paying taxes because they don't make enough money.

How do you get money to people at the bottom who are not working? You give them jobs. How do they get jobs? People with more money than them, hire them, because more people are buying their product and more people are needed to produce and sell the product. These new employees get paid - money changes hands and tax revenue increases. Now these new employees have more money to buy food, clothes, etc. which leads to more tax revenue.

The more people spend, and the faster they spend it - the velocity of money flow increases and more tax revenue is generated. That's what we need.
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Old 05-17-2017, 03:52 PM
 
23,779 posts, read 14,906,209 times
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I was under the impression that in a capitalist system, demand for stuff created jobs.

How can a rich person who owns a business give me a job if nobody wants what he is selling?

There is a lot of money. It is all off shore. What happened to all the job creation the last time they cut taxes?
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