CDZ Why is it so bad to want a balanced budget?

[BlackSnowSlide]

My first post and very happy to be hear. Why is it that here in the US so many people argue against being financially conservative? In my home I have to balance the budget. In our small family business we have to balance the books every month. There are a lot of things we would love to have but we save and grow when we need something. Only loan I have ever had that would be considered long turn was our house mortgage that was paid off in 10 years.

 

[ScienceRocks]

It isn't if we do it right, but the republicans want to cut areas that never caused any of the debt. Why cut infrastructure, science and r&d investment and education?? Which of course helps grow our economy allowing us to pay down the debt. Did you know that we're now at levels of infrastructure investment that haven't been seen since the early 1990's? We have 100+ million more people using these roads, bridges, etc then we did at that time. Shouldn't we be spending more.

What is the cause of the debt?
1. Nation building and war
2. Welfare and a broken healthcare system
3. Bail-outs and federal infusion of tens of billions of dollars into the stock market

Republicans focus on things that make our country stronger to cut but hardly ever focus on the real problem. They want to take a axe to everything while a good increase in revenue with some attention to the 3 areas above would do it.

Bill Clinton balanced our budget without cutting infrastructure, science, r&d and education. It can be done.

 

[DarkFury]

First off welcome. And YES we need to run this country budget wise just like a family or company.

 

[ScienceRocks]

First off welcome. And YES we need to run this country budget wise just like a family or company.

10 years of nation building...Lets not do it.
Infusion of hundreds of billions of dollars into the stock market
We need to keep repairing our healthcare system
and go back to 2007 levels of welfare and benefits.

This is 99% of what is causing the debt.

Once we do this then we can spend money on making money.

 

[Moonglow]

Can't play war on a balanced budget..

 

[DarkFury]

First off welcome. And YES we need to run this country budget wise just like a family or company.

10 years of nation building...Lets not do it.
Infusion of hundreds of billions of dollars into the stock market
We need to keep repairing our healthcare system
and go back to 2007 levels of welfare and benefits.

This is 99% of what is causing the debt.

Once we do this then we can spend money on making money.

Cut overseas aid {world welfare} by 20% a year for the next five years and let OTHER countries learn to stand on their own.

Take the top 10% as far as earnings OFF welfare and let them stand on their own.

Quit paying ANY welfare to ILLEGALS for ever.

Start a flat tax of 15% that applies to ALL.

 

[ScienceRocks]

Darkfury,,,I agree with you on all besides the flat tax...The rich take in most of the wealth and use far more resources so they should pay more.

 

[BlackSnowSlide]

Thank you for the welcomes. Our business budget gives 10 percent to charity. Home budget is 20%. Foreign aid should be in the same lines of percentages. We should save10% as was taught to us since we were little kids. Helping poor and homeless should be a charitable thing instead of a government thing. Charity is people volunteering their time and skills instead of paid people by government.

 

[ScienceRocks]

Thank you for the welcomes. Our business budget gives 10 percent to charity. Home budget is 20%. Foreign aid should be in the same lines of percentages. We should save10% as was taught to us since we were little kids. Helping poor and homeless should be a charitable thing instead of a government thing. Charity is people volunteering their time and skills instead of paid people by government.

Well, charity couldn't do 1/50th of what the food stamp, unemployment and ssi system does. This isn't a good idea and most people in this country will disagree with you. What we should do instead is limit it and go back to 2007 levels.

Also our economy isn't the home. We have infrastructure to maintain, science institutions that keeps the US at the leading edge in tech & science and schools which educate our children. Of course, none of this caused the debt and shouldn't be blamed for it.

 

[DarkFury]

Darkfury,,,I agree with you on all besides the flat tax...The rich take in most of the wealth and use far more resources so they should pay more.

The rich would pay more under a flat tax. Leave a total of three deductions for people.
1, Home loan interest....to encourage home ownership.
2, Double the marriage deduction to ENCOURAGE marriage.
3, Double the child deduction to ENCOURAGE families.

Companies
1,100% write off for research and development to encourage start ups and tech
2, Farmers cut taxes on stock and property to ENCOURAGE growth and CUT subsidies.
3, Tariff overseas goods so they compete in quality NOT price.

 

[Asclepias]

My first post and very happy to be hear. Why is it that here in the US so many people argue against being financially conservative? In my home I have to balance the budget. In our small family business we have to balance the books every month. There are a lot of things we would love to have but we save and grow when we need something. Only loan I have ever had that would be considered long turn was our house mortgage that was paid off in 10 years.

A couple of reasons. The first is false equivalency. You have a lot less people in your home with differing ideas on how to do things than a country does.

The second and arguably the most important is if we have a balanced budget the banks wont make money on loan interest. Thats actually unamerican.

 

[Freemason9]

The OP refers to his household budget as an example of how the nation should approach the federal deficit/debt. This is gravely erroneous and reflects a general ignorance among Americans regarding economics and how the monetary supply works. American dollars are only created by issuance of debt obligations. Debt is new money. When the economy grows, new debt must be issued to reflect that increased monetary value (otherwise, we would have deflation). The issuance of new money (debt) must keep pace with increases in the GNP.

The federal "debt" is mislabeled. It is, in fact, investment in the nation.

 

[2aguy]

My first post and very happy to be hear. Why is it that here in the US so many people argue against being financially conservative? In my home I have to balance the budget. In our small family business we have to balance the books every month. There are a lot of things we would love to have but we save and grow when we need something. Only loan I have ever had that would be considered long turn was our house mortgage that was paid off in 10 years.

The problem is that you as private individual can't just print money to cover your spending….the politicians can…..you also can't go into unlimited debt, because eventually you have to pay it back….the U.S. can go into as deep a debt as the politicians want to……

So….the politicians, in order to balance the budget on paper, can simply say they have to raise taxes…in fact, it is Constitutionally called for because of the balanced budget requirement……..and they will ignore cutting spending entirely.

 

[warf]

The rich would pay more under a flat tax. Leave a total of three deductions for people.

How is cutting the top rate from 35% to 15% going to make the rich pay more income tax?

What deductions are you talking about?

 

[DarkFury]

The rich would pay more under a flat tax. Leave a total of three deductions for people.

How is cutting the top rate from 35% to 15% going to make the rich pay more income tax?

What deductions are you talking about?

If you only keep the three deductions I listed the rich will pay more.
The long form tax form contains many options for hiding wealth.
A flat tax with those three deductions raises their amount they pay.

 

[warf]

If you only keep the three deductions I listed the rich will pay more.
The long form tax form contains many options for hiding wealth.
A flat tax with those three deductions raises their amount they pay.

It won't work.

When I was working and spending $2,000/year on new tools and safety equipment the deduction for those things was essential.

Without them there would be no reason to be a mechanic, electrician, boat builder, or engage in any other line of work that requires expenditures for tools etc.

Wouldn't it be better to just remove the tax loopholes instead of lowering the rate?

Also I think the amount spent on welfare would be drastically cut if we stopped sending our good paying jobs to low wage countries.

 

[C_Clayton_Jones]

No one says it's "bad."

The problem is how most on the right want to balance the budget.

 

[Mac1958]

My first post and very happy to be hear. Why is it that here in the US so many people argue against being financially conservative? In my home I have to balance the budget. In our small family business we have to balance the books every month. There are a lot of things we would love to have but we save and grow when we need something. Only loan I have ever had that would be considered long turn was our house mortgage that was paid off in 10 years.

The partisan ideologues from both parties will point the finger at each other over this.

A Balanced Budget Amendment would force both silly parties to fully justify their fiscal & tax agendas, and neither party appears to have the balls to take that on.

Therefore, you won't often find them pushing a BBA with any passion. They're cowards.
.

 

[2aguy]

The rich would pay more under a flat tax. Leave a total of three deductions for people.

How is cutting the top rate from 35% to 15% going to make the rich pay more income tax?

What deductions are you talking about?

When you lower the rate you get more businesses and increased activity generating more money...it happened when Kennedy, Reagan and Coolidge lowered the tax rates.....or was it one of the other Presidents?

 

[2aguy]

My first post and very happy to be hear. Why is it that here in the US so many people argue against being financially conservative? In my home I have to balance the budget. In our small family business we have to balance the books every month. There are a lot of things we would love to have but we save and grow when we need something. Only loan I have ever had that would be considered long turn was our house mortgage that was paid off in 10 years.

The partisan ideologues from both parties will point the finger at each other over this.

A Balanced Budget Amendment would force both silly parties to fully justify their fiscal & tax agendas, and neither party appears to have the balls to take that on.

Therefore, you won't often find them pushing a BBA with any passion. They're cowards.
.

No it won't.....it will mandate that they raise taxes to pay for their increased spending...do you really want that?