1st time since Depression- Gov. govs pays more to households than they get in revenue

Discussion in 'Economy' started by Trajan, Apr 20, 2011.

  1. Trajan
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    Trajan conscientia mille testes

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    well, here we are; loopholes, deductions and transfer payments etc....the madness has got to stop.


    Budget Deficit: Government Handouts Top Tax Income

    snip-
    The difference was about $150 billion, equivalent to more than 1 percentage point of overall personal income and about four times the amount Republicans and Democrats agreed to cut from government spending through Sept. 30.

    With President Obama’s deficit-reduction plan now on the table, the political left, right and center are ready to rumble over how to assure long-term fiscal stability. The big questions are where to slash and by how much, but over the next year or two, the most important question for the economy might well be how quickly the cutting should begin. Households have become unusually dependent on the government for income support and removing that prop too fast could put the recovery at risk.


    [​IMG]

    For the first time since the Great Depression, households are receiving more income from the government than they are paying the government in taxes. The combination of more cash from various programs, called transfer payments, and lower taxes has been a double-barreled boost to consumers’ buying power, while also blowing a hole in the deficit. The 1930s offer a cautionary tale: The only other time government income support exceeded taxes paid was from 1931 to 1936. That trend reversed in 1936, after a recovery was underway, and the economy fell back into a second leg of recession during 1937 and 1938.

    more at-
    Budget Deficit: Government Handouts Top Tax Income
     
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  2. Jroc
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    Jroc יעקב כהן Supporting Member

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    Right were Obama and the libs want it people dependent on government.
     
  3. sparky
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    sparky VIP Member

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    The big questions are where to slash and by how much


    foreign welfare queens?

    [​IMG]
    [​IMG]
     
  4. Momanohedhunter
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    Momanohedhunter BANNED

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    Going by the first pie chart, I would take a serious look at everything in red and yes, that means defense. I would also do away with the education slice due to the fact that Government never gets anything right. I would then take a look at health and human services and housing as thees are two more areas that the Government needs to stay out of because they will screw it up to much. Then take a serious look at community development and possibly get rid of that to.
     
  5. sparky
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    sparky VIP Member

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    well we'd sure get more a bang for our $$$ if we

    a)let our troops win

    and......


    b)let our kids think

    just mho, of course....
     
  6. Momanohedhunter
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    Momanohedhunter BANNED

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    True and a half ! We could do some serious cutting in defense alone and still keep our troops paid with benefits and superbly equipped. And I also agree with you about letting the kids think. Lots of cutting can happen and needs to happen.
     
  7. sparky
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    sparky VIP Member

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    well Momanohedhunter , were we to ask any of those individuals in the 'trenches', be them teachers or troops (quickly becoming indistinguishable imho) , i'd wager we'd find them opining very much in contrast with the powers that be......

    they simply lack a cost efficacy from the tax rubba meets the road viewpoint imho
     
  8. finebead
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    finebead VIP Member

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    We clearly see the effects of the Bush tax cuts in 2001 and 2003, which never trickled down, grew the economy, and resulted in "higher tax receipts" (republican lie), and the Great Recession that started in 2007 (killing jobs and income tax revenue with it). Interest rates on overnight Fed money was dropped to zero, killing the income of all fixed income investors and dropping those tax receipts. Many 62 year olds and higher who lost their jobs could not find another one so they HAD to start taking a lower Social Security pay out in order to live (some hope to get another job, suspend SS payouts to let the payout rise for their real retirement).

    It's a perfect storm, everything bad hitting at the same time; dramatically lower income (loss of 500 Billion per year of income tax receipts), combined with higher expenses to SS recipients that were not planned to happen for a few more years. But its ultimately caused by the housing bubble the repubs blew up in 2001-2006, and the repub failure in those years to regulate the mortgage lenders and the big money center banks who invented the collateralized mortgage obligations and sold them to everyone.
     
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    Last edited: Apr 21, 2011
  9. sparky
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    sparky VIP Member

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    on topic, what about the offshore tax havens?

    i mean, can the Gov possibly turn the 'tax' focus upstairs for a change, instead of arguing about mammograms on the floor of Congress?

    “There are anywhere between $10 and $20 trillion sitting offshore at the moment. Half of world trade is processed in one way or another through tax havens.” Shaxson is the author of the new book, Treasure Islands: Uncovering the Damage of Offshore Banking and Tax Havens

    YouTube - Offshore tax havens: much bigger problem than people realize 2.

    [ame=http://www.youtube.com/watch?v=VMh6fe6PjCw]YouTube - Offshore tax havens: much bigger problem than people realize 2.[/ame]
     
  10. Momanohedhunter
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    Momanohedhunter BANNED

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    It would not have been so bad for the normal folks if they would have saved some money and read there paper work when they bought the house they could not afford. To go on about who, what and why it happened is nothing but fodder for political message forums. The politicians, Republican and Democrat are only going to do the bare minimum to fix it. They need to grow some nuts and cut like crazy.
     

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