Jul 17th 2011, 15:05:03
"That's responsible governance, something we haven't seen since the 90s."
I know, Newt did a pretty good job eh?
"However, that is not the same situation as now. The US has the lowest tax burden its seen in decades, and the rich and ultra-rich have a crazy low tax burden. America is also facing the biggest pinch in their balance books ever.
Do you now see that these two things are related as easily correctable? :p"
Um, you'd better check our GDP % spending if you think taxes has anything to do with this deficit. It's not even close. If we tax the rich 100% we don't pay for what we are doing. You could check out the revenue as a % of GDP vs spending as a % of GDP. Move those tax rates as you may and revenues stay pretty level. Our spending is what has caused this entire problem, not taxes.
"so long as you continue to rely on the government for things like transportation networks, unemployment, and most importantly security."
Transportation is a miniscule amount of the budget and our military (I and think we can cut it down some) still doesn't cost what social security, medicare and welfare cost. 500 billion out of 3.7 trillion really isn't going to be the deal breaker. We would need a couple hundred billion cut to the military and it would keep us safe as well as save us money. Bring back our military from Europe and most of Asia, get out of Libya, and removing ourselves from the IMF and UN would be a great place to start. However, we still need to cut about 1.2 trillion more dollars...and entitlement is the bloated government we don't need.
"Alter... Almost every Republican that already has declared themselves a candidate for 2012 Pres election is advocating dropping Capital gains Taxes to zero or atleast dropping it for 5 years. I really don't see how making it tax free to sell off your assets will crate jobs. Especially after seeing how Borrowing my grandkids future income to give to the banks and investment houses has not lead to a surge in them loaning or investing that money. I would expect a zero CGT to trigger a huge increase in Unemployment instead but hay, lets reward Wallstreet and let them live completley tax free for a few years cause they didn't F.CK us all over too well already. "
So, now that we have confirmed that keeping capital gains taxes low will increase tax revenues for capital gains, it seems we move to how it helps the economy, even if they are set to zero. Cutting the capital gains tax to zero will gain, obviously, zero revenues directly. However, the investments they make will create wealth in the economy. How it increases the unemployment...seems you just pulled that logic out of your hat. It goes back to how wealth is created, not circulated. It isn't a zero sum game so lets make a bigger pie by increasing incentive to invest. Who gets the money they invest and how is it used? They also wanted to zero out dividends taxes and lower corporate taxes as well. Making us business friendly not only for investors, but for the business owners themselves. That style of governance is what I labeled gearing a society for prosperity and not equality. You should check the government regulations that caused this meltdown before you blame wall street.
I know, Newt did a pretty good job eh?
"However, that is not the same situation as now. The US has the lowest tax burden its seen in decades, and the rich and ultra-rich have a crazy low tax burden. America is also facing the biggest pinch in their balance books ever.
Do you now see that these two things are related as easily correctable? :p"
Um, you'd better check our GDP % spending if you think taxes has anything to do with this deficit. It's not even close. If we tax the rich 100% we don't pay for what we are doing. You could check out the revenue as a % of GDP vs spending as a % of GDP. Move those tax rates as you may and revenues stay pretty level. Our spending is what has caused this entire problem, not taxes.
"so long as you continue to rely on the government for things like transportation networks, unemployment, and most importantly security."
Transportation is a miniscule amount of the budget and our military (I and think we can cut it down some) still doesn't cost what social security, medicare and welfare cost. 500 billion out of 3.7 trillion really isn't going to be the deal breaker. We would need a couple hundred billion cut to the military and it would keep us safe as well as save us money. Bring back our military from Europe and most of Asia, get out of Libya, and removing ourselves from the IMF and UN would be a great place to start. However, we still need to cut about 1.2 trillion more dollars...and entitlement is the bloated government we don't need.
"Alter... Almost every Republican that already has declared themselves a candidate for 2012 Pres election is advocating dropping Capital gains Taxes to zero or atleast dropping it for 5 years. I really don't see how making it tax free to sell off your assets will crate jobs. Especially after seeing how Borrowing my grandkids future income to give to the banks and investment houses has not lead to a surge in them loaning or investing that money. I would expect a zero CGT to trigger a huge increase in Unemployment instead but hay, lets reward Wallstreet and let them live completley tax free for a few years cause they didn't F.CK us all over too well already. "
So, now that we have confirmed that keeping capital gains taxes low will increase tax revenues for capital gains, it seems we move to how it helps the economy, even if they are set to zero. Cutting the capital gains tax to zero will gain, obviously, zero revenues directly. However, the investments they make will create wealth in the economy. How it increases the unemployment...seems you just pulled that logic out of your hat. It goes back to how wealth is created, not circulated. It isn't a zero sum game so lets make a bigger pie by increasing incentive to invest. Who gets the money they invest and how is it used? They also wanted to zero out dividends taxes and lower corporate taxes as well. Making us business friendly not only for investors, but for the business owners themselves. That style of governance is what I labeled gearing a society for prosperity and not equality. You should check the government regulations that caused this meltdown before you blame wall street.