Taxes ??

Discussion in 'Politics' started by Navy1960, Oct 29, 2011.

  1. Navy1960
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    Navy1960 Senior Member

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    This analysis revealed a lot of surprising conclusions, including the following:
    Today's government spending levels are indeed too high, at least relative to the average level of tax revenue the government has generated over the past 60 years. Unless Americans are willing to radically increase the amount of taxes they pay relative to GDP, government spending must be cut.
    Today's income tax rates are strikingly low relative to the rates of the past century, especially for rich people. For most of the century, including some boom times, top-bracket income tax rates were much higher than they are today.
    Contrary to what Republicans would have you believe, super-high tax rates on rich people do not appear to hurt the economy or make people lazy: During the 1950s and early 1960s, the top bracket income tax rate was over 90%--and the economy, middle-class, and stock market boomed.
    Super-low tax rates on rich people also appear to be correlated with unsustainable sugar highs in the economy--brief, enjoyable booms followed by protracted busts. They also appear to be correlated with very high inequality. (For example, see the 1920s and now).
    Periods of very low tax rates have been followed by periods with very high tax rates, and vice versa. So history suggests that tax rates will soon start going up.


    THE HISTORY OF TAXES: Here's How High Today's Rates Really Are

    In short it does appear that both sides of the issue seem to be somewhat right when you look at it from a historical view. One side advocates that simply cutting taxes, and then cutting the Govt. to the bone will solve our problem, the only problem there is it does not address the already existing money we owe and the interest we are paying on it going forward not to mention the fact what it will do to those groups of American's our nation owes a debt to, yes, I said a debt. Think of it this way, Seniors for example are the very people who's shoulders we stand upon that helped build this nation, when you pass by someone who is elderly , that person may have worked in a factory that built the Apollo Moon rocket, or designed the first computer, or even fought on D-Day. You do not know, and the Social Security they paid into that our Govt. has been borrowing from and which is one of the largest debt holders of US debt, should take some priority over foreign debt. Vets, well that goes without saying.

    As for the Democrat view, they seek to raise taxes on one group, to address the issue of revenue to the Federal Govt. with little effort to address the spending issue properly. In short if you do not address spending in area's that need it, and especially in such area's Defense, and healthcare, etc. then raising taxes will lead to even more debt regardless of how much revenue you collect.

    The bottom line is that both of them are half right, so why then does it appear that its so hard for them to meet in the middle ? Perhaps because, many of those who represent us have forgotten that they are American first , rather than the party they represent first?
     
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  2. Wiseacre
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    Wiseacre Retired USAF Chief Supporting Member

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    It's all well and good to look at past tax cuts and hikes and draw conclusions about how good or bad things turned out. But taxes aren't the only factor, I would say there are actually many other factors involved in economic growth (or lack). For instance, Clinton raised taxes in 1993, but it didn't seem to matter. But that was then, the attitude of the country was different and we weren't facing a 15 trillion dollar debt and rising. IOW, we shouldn't expect the same result if we apply past actions to the current situation.

    Many libs want to return to the super high tax rates of the 50s. But back then the US was the only game in town, the rest of the world was recovering from WWII, and there was no place else to invest. Today's environment is different, investors can put their money in a lot of other places, they can move their businesses or expand it in other countries and make more money if the business climate there is more advantageous than it is here. Which it is, and not just because of the cheaper labor either.

    Or they can put their money into tax shelters and foundations that avoid the tax hit. This is not a guess, there are studies that show what happens when you raise tax rates. Rich guys find ways to avoid paying more taxes, and our economy takes a hit or at least is less robust than it could be. Sure, in a time of high optimisim like we had in the 90s, there's money to be made and higher taxes are not that big of a drawback. Today however, is not a time of "irrational exuberance", demand is not going to go through the roof any time soon. I wish libs would realize that now is just not the time to be taking money out of the private sector, in the form of higher taxes. Yeah I know, get back in touch with reality, that ain't happening.
     
  3. Navy1960
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    Navy1960 Senior Member

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    You know, my contention is a pretty simple one, but then again, I tend to be sorta of an old geezer when compared to today. LOL. I see nothing wrong honestly with the rate in which peope are taxed at today, rather its the way in which taxes are collected. Let me give my thinking on the subject, be it dem or repub, if a company were in the business of hiring Americans and promoting this nation then they should reap the benefits of an American tax code. Likewise, if they are not and hiring overseas,sending,and keeping money oversea's then you know what, as far as I'm concerned, those benefits like deductions don't apply. I honestly see it this way, when the tax base is bigger , revenues increase, and at the current rate with a reformed tax code, and a plan by which you address the budget issues, as well as keep in mind your obligations to your nations Vets and Seniors is not a big hill to climb. Thats why I was led to the conclusion that in many ways they are both half right, and it would appear that if they (being those who represent us) took a step back and realized, hey we are Ameircans first, then we might get some legislation passed that works. I tend to believe that our "can do" spirit that has made us what we are, is alive and well in the general public, it's just that lately that spirit has been kept at bay by members of congress and politicial figures who's main interest is selling a book, getting a TV Show, or retiring wealthy.
     

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