$3.5T Not As Big As You Might Think

[Ordinary Guy]

Well, if that is true, you could have led with that.
Not everyone is as fortunate, as to get a deal like that.

2% can be had by anyone with good credit when it is offered. When everyone else was borrowing money to go to college for unknown job markets, I worked, by the time I was 30 I had already built and sold 2 houses. I was raised/taught that one never buys a house without at bare minimum 20% down. I am 57 now and hopefully building my last house but this being my 3rd marriage, who really knows for sure.

 

[pknopp]

Excuse me?

You want zero growth and deflation.

Find an economist that thinks that's anything BUT a stupid thing to try for.

When it's pointed out that your reply is inane your response is to double down.

 

[Lesh]

When it's pointed out that your reply is inane your response is to double down.

Find that economist

 

[Papageorgio]

I don't know. Our country is so polarized these days I have almost given up all hope.

True, neither side seems to want to work together for the benefit of the country. I remember when they used to compromise on spending bills. AHHHH the good ol' days!

 

[Lesh]

Sooner or later, all this debt is going to sink us. At some point, investors are no longer going to trust our ability to pay it all back and will start demanding higher interest rates on Treasuries.

Then we're fucked.

You know as well as I do that we never “pay it all back”

So tell me… at what point do interest payments become a problem ?

 

[g5000]

You know as well as I do that we never “pay it all back”

So tell me… at what point do interest payments become a problem ?

The day the investors who hold all that debt no longer trust our ability to pay even the interest on the bonds.

 

[Toddsterpatriot]

So tell me… at what point do interest payments become a problem ?

When lenders don't trust that you'll pay them back.

 

[jc456]

It actually costs $0.

Left wing math.

only in demofk world can you borrow 3.5 trillion and think you owe zero.

 

[jc456]

Actually, the claim isn't that it COSTs zero, the actual claim is that it simply adds zero, to the deficit/ national debt.

because why?

 

[Lesh]

The day the investors who hold all that debt no longer trust our ability to pay even the interest on the bonds.

And when is that? What amount of interest would trigger it?

 

[AZrailwhale]

Tax cuts do result in more economic activity. We've seen that. We also know from watching human behavior that when you tax something, like economic activity, you get less of it, for the simple reason that you are increasing its cost. Remember the yacht tax? We were really gonna get dose rich dudes, yeah, by slapping a 10% tax on those expensive yachts they buy. Homework exercise, how much new revenue did the tax generate and did the wealthy buy fewer yachts?

The point is, humans alter their behavior to avoid paying higher taxes and tax increases never generate as much new revenue as they're projected to because those who write them assume people won't change anything and will keep doing what they've been doing, only paying more. Want to jack up the capital gains tax? You'll get less investment. Jack up the inheritance tax? You'll see people dying with their net worth just under whatever level you set, but their heirs somehow will still have the wealth. Jack up a corporation's taxes? Prices will go up. It's what people do.

What the "yacht tax" did was make the boats most Americans buy more expensive and run a number of boat builders out of business.

 

[g5000]

And when is that? What amount of interest would trigger it?

Who knows? It would have to be a confluence of events. Could be tomorrow, could be ten years from now.

But that day is coming.

And then we're fucked.

 

[pknopp]

And when is that? What amount of interest would trigger it?

It has already started.

New global currency to replace U.S. dollar. It is not cryptocurrency - P.M. News

 

[pknopp]

Tax cuts do result in more economic activity. We've seen that. We also know from watching human behavior that when you tax something, like economic activity, you get less of it, for the simple reason that you are increasing its cost. Remember the yacht tax? We were really gonna get dose rich dudes, yeah, by slapping a 10% tax on those expensive yachts they buy. Homework exercise, how much new revenue did the tax generate and did the wealthy buy fewer yachts?

The point is, humans alter their behavior to avoid paying higher taxes and tax increases never generate as much new revenue as they're projected to because those who write them assume people won't change anything and will keep doing what they've been doing, only paying more. Want to jack up the capital gains tax? You'll get less investment. Jack up the inheritance tax? You'll see people dying with their net worth just under whatever level you set, but their heirs somehow will still have the wealth. Jack up a corporation's taxes? Prices will go up. It's what people do.

Damn Bush for passing that anyhow, eh?

 

[Lesh]

And when is that? What amount of interest would trigger it?

What per cent of GDP?

What per cent of the budget

Where is it now?

You’re a numbers guy. Clue us in…

 

[g5000]

What the "yacht tax" did was make the boats most Americans buy more expensive and run a number of boat builders out of business.

Instead of buying yachts or jets, the wealthy spent their money on alternate luxury items. And those businesses prospered.

So the jet tax didn't really net any new revenue for Obama to spend.

 

[2aguy]

Here's Why Democrats' $3.5 Trillion Legislation Isn't (Quite) As Big As It Sounds

It's a lot of money, but still less than the Great Society — and still not what they spend in Europe.

www.huffpost.com

In fact it includes Medicare and other items that save $1T.

Including savings on drug costs. Something long overdue

Wow....you really are dumb.....

This will spend more money, and increase taxes 10X what they say it will....and you keep buying what they are selling....you really are a doofus.

 

[Lesh]

What the "yacht tax" did was make the boats most Americans buy more expensive and run a number of boat builders out of business.

I have a boat in a marina that is chock full.

 

[AZrailwhale]

It is odd that the left want the full deductions restored to pre Trump levels.

If SALT deductions are not that big of a deal, why are Dems pushing to restore them?

They're a really big deal for people living in states like New York and California with high state taxes. California politicians always got away with raising state taxes by saying you can deduct it from your federal taxes so you aren't really paying it anyway. Now the rich in California are having to really pay and they aren't happy campers about it.

 

[Papageorgio]

Who knows? It would have to be a confluence of events. Could be tomorrow, could be ten years from now.

But that day is coming.

And then we're fucked.

There is coming a day when we move from the dollar to the Yen, then we can watch our rating dive, our interest rates rise and then loans will be called. I can't figure out why people can't see this.