Do we really have a revenue problem?

Discussion in 'Economy' started by Stephanie, Jul 7, 2011.

  1. Stephanie
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    Stephanie Diamond Member Supporting Member

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    SNIP:
    posted at 9:25 am on July 7, 2011 by Ed Morrissey
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    Over the last couple of days, we’ve had a good debate at Hot Air over the nature of our fiscal crisis between Jazz Shaw, and J. E. Dyer, and me. At least we all recognize that we have a fiscal crisis; some members of Congress and “intellectual authorities” (with interesting if unreported conflicts of interest) still act as though nothing at all is wrong. My friend Jazz wrote yesterday that we have a revenue problem as well as a spending problem in answer to my post rebutting David Brooks’ column, so let’s take a look at federal revenue to see whether Jazz’ contention holds up.
    The Heritage Foundation provides this chart of federal revenue over the last 50 years in inflation-adjusted 2010 dollars, and the data is pretty clear that we have a recession problem, not a revenue problem:

    CHART AT SITE..couldn't bring it over.

    Take a look at the trends here, again remembering that the data is all in 2010 dollars. In fifty years, we have tripled overall federal revenue, and prior to the current recession/stagnation we had quadrupled it. The current trough from the 2007 peak resulted from the fall in economic activity, not from tax cuts or any other intervention. It’s similar to what happened in the prior trough, when the 2000-1 recession and the 9/11 attacks cut economic activity through 2003.
    For that matter, look what happened to federal revenue after the much-maligned Bush tax cuts took full effect in 2003. Economic activity expanded rapidly — and so did federal revenues. In fact, the economy during that period boomed, and receipts from both personal and corporate taxes peaked as a result. The Bush tax rates, as they are properly called today, did not create a revenue vacuum; they helped produce an expansion that enhanced rather than lost revenue.


    READ IT ALL and charts at..
    Do we really have a revenue problem? « Hot Air
     
  2. Claudette
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    Claudette Gold Member

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    We don't have a revenue problem.

    We have a spending problem.

    We have a bloated giant Govt controlled by a bunch of idiots that we elected.

    They need to slice and dice the fat bloated Govt and stop spending like a bunch of drunken sailors.

    I'm sure we are all waiting for that to happen. Hint. We ain't holding our breath.
     
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  3. LibocalypseNow
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    LibocalypseNow Senior Member

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    Hopefully more people will wake up at some point. We don't have a Taxpayer problem. We have a Government problem. They spent us into this $14.5 Trillion Debt Hell. The Taxpayers had nothing to do with that. The Government took in plenty of revenue. They were just shockingly incompetent in how they spent it. Now the Government is of course trying to scapegoat the Taxpayers. I'm not surprised they're doing that. But spending $14.5 Trillion more than they took in is all on the Government. They need to get their own House in order before trying to punish and blame Taxpayers. This is their awful mess. Let them clean it up.
     
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    Last edited: Jul 7, 2011
  4. DontBeStupid
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    DontBeStupid Look it up!

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    How anyone can look at the valley that is the Bush Tax Cuts and claim that that was a good thing is beyond me.

    Oh wait. Heritage Foundation.

    Well that explains it.
     
  5. Avatar4321
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    Avatar4321 Diamond Member Gold Supporting Member

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    What kind of ignorant people are we to think that $2.15 Trillion dollars is a revenue problem?
     
  6. DontBeStupid
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    DontBeStupid Look it up!

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    What kind of ignorant people are we to think that $2.15T in 2011 would buy the same as $2.5T in 2000?
     
  7. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    We have at least 3 problems, none of which is revenue.

    1. We have a tax system problem, when a company like GE pays no taxes and even has a tax credit to apply in future years, that's a tax system problem. When a guy like Warren Buffet pays a lower % thanhis seretary, that's a tax system problem. What we have now is ridiculous, any way you slice it some people are getting more breaks than others and that ain't fair.

    2. We have a recession problem, fix the economy and get it growing and you'll see more revenue as a result. Problem is, the current administration is intent on doing what they think is FAIR rather than what is economically effective, you just can't do the shit they're doing and not expect adverse results.

    3. We have a government problem that is more intent on politics than on doing what is in the best interests of the USA. It ain't one side, it's both sides who are failing to do what's right for us instead of what's good for them or their party. I am fearful that we're going to have to suffer through another major recession or depression before we as a people force our political leadership to stop screwing around and get their act together. Maybe it won't work even then, but sooner or later something has to change in Washington, I just hope the pain the rest of us have to deal with isn't too awful in the meantime.
     
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  8. Quantum Windbag
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    Quantum Windbag Gold Member

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    The ones that think the government needs to spend $4 trillion a year.
     

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