Cut Spending

[Toro]

There is no way the government can pay for everything without raising taxes dramatically. They would have to raise taxes to the point of encouraging widespread tax evasion.

Washington spends more than it takes in through tax revenues, resulting in a projected budget deficit of almost $1.35 trillion in 2010, or 9 percent of GDP, according to the Congressional Budget Office. Couldn't we get rid of the deficit by raising taxes?

No. A study we conducted at the Tax Policy Center found that Washington would have to raise taxes by almost 40 percent to reduce -- not eliminate, just reduce -- the deficit to 3 percent of our GDP, the 2015 goal the Obama administration set in its 2011 budget. That tax boost would mean the lowest income tax rate would jump from 10 to nearly 14 percent, and the top rate from 35 to 48 percent.

What if we raised taxes only on families with couples making more than $250,000 a year and on individuals making more than $200,000? The top two income tax rates would have to more than double, with the top rate hitting almost 77 percent, to get the deficit down to 3 percent of GDP. Such dramatic tax increases are politically untenable and still wouldn't come close to eliminating the deficit.

washingtonpost.com
http://www.taxpolicycenter.org/UploadedPDF/412018_seeking_revenue.pdf

That is simply untenable. The government is going to have to cut spending, and dramatically.

 

[elvis]

There is no way the government can pay for everything without raising taxes dramatically. They would have to raise taxes to the point of encouraging widespread tax evasion.

Washington spends more than it takes in through tax revenues, resulting in a projected budget deficit of almost $1.35 trillion in 2010, or 9 percent of GDP, according to the Congressional Budget Office. Couldn't we get rid of the deficit by raising taxes?

No. A study we conducted at the Tax Policy Center found that Washington would have to raise taxes by almost 40 percent to reduce -- not eliminate, just reduce -- the deficit to 3 percent of our GDP, the 2015 goal the Obama administration set in its 2011 budget. That tax boost would mean the lowest income tax rate would jump from 10 to nearly 14 percent, and the top rate from 35 to 48 percent.

What if we raised taxes only on families with couples making more than $250,000 a year and on individuals making more than $200,000? The top two income tax rates would have to more than double, with the top rate hitting almost 77 percent, to get the deficit down to 3 percent of GDP. Such dramatic tax increases are politically untenable and still wouldn't come close to eliminating the deficit.

washingtonpost.com
http://www.taxpolicycenter.org/UploadedPDF/412018_seeking_revenue.pdf

That is simply untenable. The government is going to have to cut spending, and dramatically.

i don't see it happening.

 

[tigerbob]

There is no way the government can pay for everything without raising taxes dramatically. They would have to raise taxes to the point of encouraging widespread tax evasion.

Washington spends more than it takes in through tax revenues, resulting in a projected budget deficit of almost $1.35 trillion in 2010, or 9 percent of GDP, according to the Congressional Budget Office. Couldn't we get rid of the deficit by raising taxes?

No. A study we conducted at the Tax Policy Center found that Washington would have to raise taxes by almost 40 percent to reduce -- not eliminate, just reduce -- the deficit to 3 percent of our GDP, the 2015 goal the Obama administration set in its 2011 budget. That tax boost would mean the lowest income tax rate would jump from 10 to nearly 14 percent, and the top rate from 35 to 48 percent.

What if we raised taxes only on families with couples making more than $250,000 a year and on individuals making more than $200,000? The top two income tax rates would have to more than double, with the top rate hitting almost 77 percent, to get the deficit down to 3 percent of GDP. Such dramatic tax increases are politically untenable and still wouldn't come close to eliminating the deficit.

washingtonpost.com
http://www.taxpolicycenter.org/UploadedPDF/412018_seeking_revenue.pdf

That is simply untenable. The government is going to have to cut spending, and dramatically.

I agree they have to. If they do, it will be interesting to see how the impact on certain cornerstone policies is explained.

 

[Article 15]

End the wars.

Raise the retirement age.

Implement across the board cuts on every federal department's budget.

Start there.

 

[Toro]

I had a conversation with my wife this morning about taking out American citizenship. I always assumed we eventually would. However, with the big tax hikes coming, for the first time, I'm considering not doing so. We probably will, but it was a certainty a few years ago.

 

[tigerbob]

I had a conversation with my wife this morning about taking out American citizenship. I always assumed we eventually would. However, with the big tax hikes coming, for the first time, I'm considering not doing so. We probably will, but it was a certainty a few years ago.

If you did, would you have to relinquish your existing (Canadian?) citizenship?

 

[tigerbob]

End the wars.

Raise the retirement age.

Implement across the board cuts on every federal department's budget.

Start there.

Ending the war(s) would save approx $140bn, based on the 2010 figure from the CRS. Not sure about the other two.

 

[Ravi]

Amnesty.

Let those that work pay taxes.

 

[Samson]

There is no way the government can pay for everything without raising taxes dramatically.......

That is simply untenable. The government is going to have to cut spending, and dramatically.

First, the Federal government almost never pays for everything....thus the term "deficite spending."

Second, when they do pay for anything, they have the advantage of simply printing more money. Why raise taxes?

By the time the inflationary effect of increasing the monetary supply begins, then everyone will be paying more (as a % of their inflated wage).

The only way to break this cycle is with a Balanced Budget Amendment that LIMITS federal revenue to a proportion the population and the average income.

Of course, this will attract all sorts of detractors who will wonder about specifics: how much will be cut, from which programs, when, etc.. to balance a budget? And of course, everything the federal government does will be of VITAL IMPORTANCE.

 

[JBeukema]

End the wars.

Not that simple. Once the die is cast, one has no choice but to see the numbers and learn how he fares in the game.

Pulling out in a responsible manner that won' leave a power vacuum and repeat the mistakes of the past is a whole lot harder than not going tin the first place.

Raise the retirement age.

Should the Fed be allowed to renege on the 'deal' it forced upon the People when it took their money and promised to star supplying supplementary income when they reached a certain age?

Implement across the board cuts on every federal department's budget.

Got to be more specific.

End corporate wefare.

Congress doesn't need to get paid $177k/ year. 100k would be more than enough to live comfortably and set some aside for when they're booted out.

Stop paying farmers to not grow crops


reduce foreign aid; we must worry about our own people first

Eliminate federal disability and grants/loans. there is no need for such things to be handles at the federal level. Let the States and private organizations handle such things.

And pass a constitutional amendment that lets congress only spend as much as was raised through taxation the previous fiscal year, with any additional expenditure being pay-go and required to include a means of paying for itself (taxation, cuts in other spending, etc)

 

[JBeukema]

Amnesty.

Let those that work pay taxes.

They pay sales tax as is and you'll just have more come over to work under the table


all who want to reward the invaders should be hanged for treason

Why do you want to dissolve our national borer and spit upon our sovereignty?

 

[Toro]

I had a conversation with my wife this morning about taking out American citizenship. I always assumed we eventually would. However, with the big tax hikes coming, for the first time, I'm considering not doing so. We probably will, but it was a certainty a few years ago.

If you did, would you have to relinquish your existing (Canadian?) citizenship?

No. Canadians aren't taxed on worldwide income. I can go live in the Caymans tax free.

 

[Article 15]

Should the Fed be allowed to renege on the 'deal' it forced upon the People when it took their money and promised to star supplying supplementary income when they reached a certain age?

IMO, yes. Nobody collecting now would lose their benefits and then we could set a cut off DOB where you fall under the new age. If compromise is needed then that cut off could be variable.

Say the retirement age is raised to 70 ... during the transition if you are 62-64 at the time the law comes into effect you retire at 66, 59-61 you retire at 67, and so on.

 

[Ravi]

Amnesty.

Let those that work pay taxes.

They pay sales tax as is and you'll just have more come over to work under the table


all who want to reward the invaders should be hanged for treason

Why do you want to dissolve our national borer and spit upon our sovereignty?

Truthfully, I think we should decriminalize immigration status violations. If companies want to hire them...enforce wages. Hire whomever you want, pay the going rate...and deduct taxes.

Solves all kinds of problems.

 

[JBeukema]

Truthfully, I think we should decriminalize immigration status violations

Translation: we should burn all our flags, disband our law enforcement agencies, surrender our sovereignty, and declare this land up for grabs


You''re a traitor and should be shot

 

[Big Fitz]

I would consider this a modest proposal.

20% budget cut to the entire budget equally. Real cuts, not cuts in growth. All departments share the burden.
10 year freeze on the budget amount and all contingency spending. No COLI or inflationary adjustments either. That's what does the work.
Keep all the Bush tax cuts.

At this point, in 10 years, the budget will come close to balancing itself or at least put it's way on towards recovery.

 

[RetiredGySgt]

There is no way the government can pay for everything without raising taxes dramatically. They would have to raise taxes to the point of encouraging widespread tax evasion.

Washington spends more than it takes in through tax revenues, resulting in a projected budget deficit of almost $1.35 trillion in 2010, or 9 percent of GDP, according to the Congressional Budget Office. Couldn't we get rid of the deficit by raising taxes?

No. A study we conducted at the Tax Policy Center found that Washington would have to raise taxes by almost 40 percent to reduce -- not eliminate, just reduce -- the deficit to 3 percent of our GDP, the 2015 goal the Obama administration set in its 2011 budget. That tax boost would mean the lowest income tax rate would jump from 10 to nearly 14 percent, and the top rate from 35 to 48 percent.

What if we raised taxes only on families with couples making more than $250,000 a year and on individuals making more than $200,000? The top two income tax rates would have to more than double, with the top rate hitting almost 77 percent, to get the deficit down to 3 percent of GDP. Such dramatic tax increases are politically untenable and still wouldn't come close to eliminating the deficit.

washingtonpost.com
http://www.taxpolicycenter.org/UploadedPDF/412018_seeking_revenue.pdf

That is simply untenable. The government is going to have to cut spending, and dramatically.

Not under Obama. And not so long as he has the Congress. Simply won't happen. Further even if the Republicans take over one or both houses they won't have the votes to override a veto so if Obama wants his Budgets he can refuse to sign anything he does not want. Reagan found out that was a losing issue. Not sure if Obama is smart enough to figure it out.

 

[Paulie]

Amnesty.

Let those that work pay taxes.

You assume that a lot of the illegals WANT citizenship. They have it better being out of the system.

And then there's the whole labor pool saturation that's continually bringing wages down, but hey that's cool as long as we can make some immigrants feel more welcome here.