What would happen to the economy?

[SwingVoter]

if you :

-raised the top tax rate to 39.6%
-increased Medicare taxes
-added 4 cents to the gas tax


what do you think would be the likely effects?

 

[Toro]

In a recession, it would exacerbate it.

Over the long run, it would have little effect. In fact, given the size of the deficit, raising taxes to eliminate the deficit would probably help the economy since the US government wouldn't be competing for financing throughout the world, bidding up interest rates, which causes the cost of borrowing from everything for mortgages, cars and credit cards to rise.

 

[editec]

if you :

-raised the top tax rate to 39.6%

Two income upper middle and modestly well off classed families will pay slightly more in FICA taxes

-increased Medicare taxes

Everybody who works will pay slightly more taxes

-added 4 cents to the gas tax

The rich will continue to drive just as they do now, the working class will drive slightly less.

what do you think would be the likely effects?

A slight reduction in economic activity in the short run.

However if the money collected is targeted to getting the national debts down, the value of the dollar will rise somewhat, thus making all of us somewhat better off, too in the longer run.

 

[del]

A slight reduction in economic activity in the short run.

However if the money collected is targeted to getting the national debts down, the value of the dollar will rise somewhat, thus making all of us somewhat better off, too in the longer run.

"In the long run, we're all dead."-J.M. Keynes

 

[midcan5]

Little to nothing, it would depend on what the administration did with the additional income.


"There is no historical evidence that tax cuts spur economic growth. The highest period of growth in U.S. history (1933-1973) also saw its highest tax rates on the rich: 70 to 91 percent. During this period, the general tax rate climbed as well, but it reached a plateau in 1969, and growth slowed down five years later. Almost all rich nations have higher general taxes than the U.S., and they are growing faster as well."

Tax cuts spur economic growth

 

[SwingVoter]

In a recession, it would exacerbate it.

These were Bill Clinton's tax increases in 1993, after which unemployment dropped.

 

[Red Dawn]

if you :

-raised the top tax rate to 39.6%
-increased Medicare taxes
-added 4 cents to the gas tax


what do you think would be the likely effects?

Last time we increased the top marginal rate to 39%, in 1992, the economy boomed.


I don't know who's proposing raising the gas tax, but this country needs 1 trillion dollars of improvements to our crumbling infrastructure, and somebody's got to pay for it. We can't keep borrowing money from the chinese.

 

[SwingVoter]

The highest period of growth in U.S. history (1933-1973) also saw its highest tax rates on the rich: 70 to 91 percent.

also period of highest inflation, which fell along with unemployment when Reagan cut top rate from 70% to 28%

 

[SwingVoter]

I don't know who's proposing raising the gas tax

No one is now, those were all part of the 1993 Clinton tax package

 

[Toro]

These were Bill Clinton's tax increases in 1993, after which unemployment dropped.

That's because the economy was coming out of recession.

 

[Caligirl]

The rich will continue to drive just as they do now, the working class will drive slightly less.

Given the power of market forces this could then reduce the price of oil and the cost of gas would end up the same, yes?

However if the money collected is targeted to getting the national debts down, the value of the dollar will rise somewhat, thus making all of us somewhat better off, too in the longer run.

YES!

 

[Caligirl]

Last time we increased the top marginal rate to 39%, in 1992, the economy boomed.


I don't know who's proposing raising the gas tax, but this country needs 1 trillion dollars of improvements to our crumbling infrastructure, and somebody's got to pay for it. We can't keep borrowing money from the chinese.

Tom Friedman has proposed it, calling it the Patriot Tax (because it would help get us off dependence on foreign oil.)

I am all for a gas tax. Look what reduced driving did for gas prices over the summer, and it equilibrated in the end. A gas tax could well mean more money (taxes) to put towards the debt and less (profits) towards Exxon.

Friedman suggests it as a "Modest Proposal" type thing but he is also serious, in addition.

http://www.nytimes.com/2003/10/05/o...&en=eabbd10b5ee6b417&ei=5007&partner=USERLAND

 

[Skull Pilot]

What would happen if the government CUT spending and let us keep more of our own money?????

Just say no to 17 Billion dollars of PORK

 

[Diuretic]

What would happen if the government CUT spending and let us keep more of our own money?????

Just say no to 17 Billion dollars of PORK

It depends on what you do with your extra money. Will you save it or spend it?

 

[RetiredGySgt]

Last time we increased the top marginal rate to 39%, in 1992, the economy boomed.


I don't know who's proposing raising the gas tax, but this country needs 1 trillion dollars of improvements to our crumbling infrastructure, and somebody's got to pay for it. We can't keep borrowing money from the chinese.

Tell the Democrats to stop raiding the gas tax they already have and use it for road repair as was it's intention.

As for where the money will go, if a Dem is elected any new taxes will simply be to pay for MORE social programs.

 

[RetiredGySgt]

It depends on what you do with your extra money. Will you save it or spend it?

How is that YOUR or the Governments business?

 

[SwingVoter]

if a Dem is elected any new taxes will simply be to pay for MORE social programs.

which Obama program will cost more than Bush's Medicare Drug Plan?

 

[Vintij]

How is that YOUR or the Governments business?

I dont usually agree with you but I really cant believe that the most intelligent way to cut the deficit is by repeatedly taxing any class of americans. I dont think either candidate has a serious deficit policy, its either cut taxes for the rich, or increase taxes for everyone but mostly the rich. Are we really that un-inspired? Do we really have to resort to the same two options every time? I dont think the biggest threat to the US is our dangerous obsession and addiction to oil, I think its our dangerous obsession and addiction to taxing the Americans for the financial mistakes made by those in charge of the spending and the budget. Im tired of this shit, washington needs to stop asking foreign countrys and the american citizens to bail us out every time the deficit explodes. Be innovative for once in your life legislators. Seriously. I dont think anyone on this planet would say its impossible to cut the deficit without raising taxes.

 

[PeterS]

also period of highest inflation, which fell along with unemployment when Reagan cut top rate from 70% to 28%

So you are correlating high taxes with inflation? The inflation during the 70's was primarily due to oil shocks to the economy. Inflation subsided as oil prices declined due to a reduction in consumption. You are crediting Reagan with something he had absolutely nothing to do with.

 

[sjm53]

We need to cut taxes and spending. We should be free to decide what we do with our money. I for one am sick and tired of giving out billions in foreign aid to countries that hate America.