The Obvious Solution to the Fiscal Cliff and Why it Will NEVER Happen

Discussion in 'Economy' started by JimBowie1958, Nov 19, 2012.

  1. JimBowie1958
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    JimBowie1958 Old Fogey

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    The obvious solution is to give both sides a fig leaf by adopting the tax hikes on the 'rich' while providing tax deductions based on job creation in the states that makes the effective tax rate lower. These deductions could apply to corporations based on how many Americans they employ and to private individuals based on how many Americans or percentage thereof their employer employs.

    In fact a tax deduction for employees was stripped out of the tax code in the 1984 tax 'reform'. (Isnt it funny how all these *reforms* benefit corporations and kick Joe Sixpack in the 'nads? Maybe Joe should watch less sports and pay more attention to what is happening politically, but then that is why we have so much corporate sponsored sports and other entertainment.) By hiking the tax rates but still allowing for deductions that help average Americans to get jobs, its win, win all around.

    But this compromise will never happen. The two party duopoly has succeded in making political theater a permanent fixture of American politics. Both sides know that such a compromise will get their balls roasted on a spit by their respective party polarized fanatics.

    And so, the short version: get ready for a self-inflicted economic depression with a collapse of the stock markets and runaway inflation as the US dollar loses world reserve currency status.

    Merry Fucking Christmas.
     
  2. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    what? taxes up and down seems about neutral so in the end seems trivial.

    If you want simple solutions here are some game changers:

    1) a permanent debt ceiling limit
    2) a Balanced Budget Amendment
    3) a spending cap until the debt is elilminated
     
  3. JimBowie1958
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    JimBowie1958 Old Fogey

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    Yes, that is the point, the changes allow BOTH sides to claim victory AND the tax payer gains by seeing an incentive restored in the tax code for employers to hire American workers again.

    It is not always a given that someone has to lose; sometimes you can have a win for everyone.

    I like all of them but ...
    #1 needs to be indexed to inflation and
    #2 should limit expenditures to LAST YEARS revenue, not projected revenues. And
    #3 would have to define 'debt' to not calculate in Social Security revenue unless they put SS on the general budget and remove the salary cap on the SS taxes.
     
  4. EdwardBaiamonte
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    EdwardBaiamonte Gold Member

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    well I guess but keep in mind that incentives from government may not help. I mean you could have government pay half their wages, for new hires, or something like that to provide a real and obvious incentive but it probably would not help since the only way an economy really grows, like from the stone age to here, is through new inventions.
     

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