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tater · 09-28-10, 08:09 PM

If you pay positive income taxes on $5000 income you're doing it wrong—assuming you are not a dependent.

The tax cuts have pretty much nothing to do with the government's money problems. The problem is they spend too much, period. There is no other problem.

Revenues are fine as a % of GDP WRT modern norms with the top marginal rate down to 35 (all the other tax changes don't mean squat, since unless you pay in the top bracket you don't pull even a single "fair share" (some folks in the top of the 2d quintile might actually pay a "fair share" assuming they are single).

Since revenues remain fairly constant WRT GDP regardless of small changes (or even large changes) in marginal tax rates, clearly raising taxes doesn't help raise more money. Why is open to discussion, but the idea that it stifles growth makes plenty of sense in that context. The converse, that lowering rates seems to enhance growth enough to have the "cost" of the lower rates offset seems also to be true. Obviously outside of some range this might fall apart, economics is not remotely predictable (sorry to any economists out there that think they have some sort of science—they don't. (yeah, I'm a physics snob... tough

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09-28-10, 08:09 PM	#62
tater Navy Seal Join Date: Mar 2007 Location: New Mexico, USA Posts: 9,023 Downloads: 8 Uploads: 2	If you pay positive income taxes on $5000 income you're doing it wrong—assuming you are not a dependent. The tax cuts have pretty much nothing to do with the government's money problems. The problem is they spend too much, period. There is no other problem. Revenues are fine as a % of GDP WRT modern norms with the top marginal rate down to 35 (all the other tax changes don't mean squat, since unless you pay in the top bracket you don't pull even a single "fair share" (some folks in the top of the 2d quintile might actually pay a "fair share" assuming they are single). Since revenues remain fairly constant WRT GDP regardless of small changes (or even large changes) in marginal tax rates, clearly raising taxes doesn't help raise more money. Why is open to discussion, but the idea that it stifles growth makes plenty of sense in that context. The converse, that lowering rates seems to enhance growth enough to have the "cost" of the lower rates offset seems also to be true. Obviously outside of some range this might fall apart, economics is not remotely predictable (sorry to any economists out there that think they have some sort of science—they don't. (yeah, I'm a physics snob... tough )