The logic flaw of tax cuts.

[Blues Man]

In the past, the marginal tax rate in the US reached 90%, so it is nothing new.
Just once, but applying a marginal tax rate.

Historical Income Tax Rates

Wolters Kluwer takes a historical look at the top marginal income tax rates in the United States.

www.wolterskluwer.com

When the top tax rate was 90% people making 40 K were in the 50% bracket be careful what you wish for,

 

[Toddsterpatriot]

What I am saying is it can't cut spending, especially when the private debt is higher than public debt.
It needs to change its policies so that it has a positive monetary flow from the foreign sector.

The central bank can (in theory) write off the debt but has to do that in small steps. Most countries have policies against that , so the only solution is : become a net exporter or a net receiver of remittances or net receiver of interest payments ( any or all of them).

The central bank can (in theory) write off the debt but has to do that in small steps.

What debt can the central bank write off?
For what benefit?

 

[elektra]

So you don't tax them multiple times. You just raise the marginal tax rate.

The money has already been taxed once, so you are saying nobody should pay a tax on money already taxed. Once the corporation or business is taxed, there is no need to tax individuals. Which is a principle of many conservative politicians.

 

[Mexicano]

Except that the government cannot run anything more efficiently than a private business and if the train was private then only the people who use the train will pay for it and not people who will never use the train. And the people who will never use the train far outnumber the people who will.

Oh , I'm sure that's a myth. Just look at the banking system and how it collapsed in 2007... hardly a case of efficiency.
Then somehow China has been able to build thousands of kilometers of high speed railways . No private enterprise has matched that feat.

 

[Mexicano]

The money has already been taxed once, so you are saying nobody should pay a tax on money already taxed. Once the corporation or business is taxed, there is no need to tax individuals. Which is a principle of many conservative politicians.

How so?
A company is an abstract entity with different activities. It is not an individual being taxed.

 

[Blues Man]

Oh , I'm sure that's a myth. Just look at the banking system and how it collapsed in 2007... hardly a case of efficiency.
Then somehow China has been able to build thousands of kilometers of high speed railways . No private enterprise has matched that feat.

Look at any government infrastructure project.

That the Big Dig In Boston for example.

700% over budget rife with corruption and political payoffs and tunnels that were falling apart in just a couple years that caused the death of a woman

 

[Toddsterpatriot]

Oh , I'm sure that's a myth. Just look at the banking system and how it collapsed in 2007... hardly a case of efficiency.
Then somehow China has been able to build thousands of kilometers of high speed railways . No private enterprise has matched that feat.

How is California's high-speed rail going?

 

[Mexicano]

Look at any government infrastructure project.

That the Big Dig In Boston for example.

700% over budget rife with corruption and political payoffs and tunnels that were falling apart in just a couple years that caused the death of a woman

Yes , sure , some projects are not efficient or badly planned. But that's hardly the overall case across all government institutions.
Public schools and universities seem to be running just fine, as well as most federal highways.

 

[Toddsterpatriot]

Yes , sure , some projects are not efficient or badly planned. But that's hardly the overall case across all government institutions.

95%-98%.....not efficient.

 

[elektra]

How so?
A company is an abstract entity with different activities. It is not an individual being taxed.

There is nothing abstract about a corporation or company.

You dont see it as double taxation? Or even triple taxation?

Tax all dollars earned, then tax it again, when it gets in the hands of an employee.

That is a lot of tax already, if every dollar is taxed once as a corporate tax than again when the employee gets paid, that means a dollar is taxed 50% to 68%. The higher tax is how much we would pay if the Democratic party got it's way and eliminated the Trump tax cut.

A dollar should only be taxed or have a portion took, once.

 

[Mexicano]

There is nothing abstract about a corporation or company.

You dont see it as double taxation? Or even triple taxation?

Tax all dollars earned, then tax it again, when it gets in the hands of an employee.

That is a lot of tax already, if every dollar is taxed once as a corporate tax than again when the employee gets paid, that means a dollar is taxed 50% to 68%. The higher tax is how much we would pay if the Democratic party got it's way and eliminated the Trump tax cut.

A dollar should only be taxed or have a portion took, once.

Of course it is abstract it is a man-made construct created four milenia ago.
No, it is not double taxing.
The payroll tax is a tax paid by the employee and withheld by the company.
The main source of value for a fiat currency is the demand created by taxation. You can't really run a fiat currency without taxation.

 

[Blues Man]

Yes , sure , some projects are not efficient or badly planned. But that's hardly the overall case across all government institutions.
Public schools and universities seem to be running just fine, as well as most federal highways.

Not some all.

And you really think out public school system is running "fine"?

https://www.cnn.com/2022/09/18/us/school-conditions-2022/index.html

Families Are Fleeing Government-Run Schools

Brooklyn elementary loses one-third of its student population and eight teachers, as the first 2021–22 enrollment numbers straggle in.

reason.com

Chicago’s public schools are emptying. Politics makes it hard to fix

Segregation intensifies a problem schools face all over America

www.economist.com

 

[task0778]

Of course it is abstract it is a man-made construct created four milenia ago.
No, it is not double taxing.
The payroll tax is a tax paid by the employee and withheld by the company.
The main source of value for a fiat currency is the demand created by taxation. You can't really run a fiat currency without taxation.

Curious if you are making this up as you go or whether there is a book from which you learned all this. You have made a number of statements that fly in the face of conventional macroeconomics and the realities of our monetary and fiscal systems. What is your source?

 

[elektra]

Of course it is abstract it is a man-made construct created four milenia ago.
No, it is not double taxing.
The payroll tax is a tax paid by the employee and withheld by the company.
The main source of value for a fiat currency is the demand created by taxation. You can't really run a fiat currency without taxation.

yes, we all understand what a payroll tax is

demand created by taxation? Americans, and the entire world can do without demand created by taxation, or inflation, as our labor produces us less.

 

[Mexicano]

Not some all.

And you really think out public school system is running "fine"?

https://www.cnn.com/2022/09/18/us/school-conditions-2022/index.html

Families Are Fleeing Government-Run Schools

Brooklyn elementary loses one-third of its student population and eight teachers, as the first 2021–22 enrollment numbers straggle in.

reason.com

Chicago’s public schools are emptying. Politics makes it hard to fix

Segregation intensifies a problem schools face all over America

www.economist.com

Considering public schooling is an almost universal world-wide policy , yes. Public schooling works just fine even at college level.

How do you explain China's success in building the largest high-speed railroad network in the world in spite of being a public project?

 

[Mexicano]

Curious if you are making this up as you go or whether there is a book from which you learned all this. You have made a number of statements that fly in the face of conventional macroeconomics and the realities of our monetary and fiscal systems. What is your source?

What particular statement do you find to "fly in the face of conventional macroeconomics"?
Yes, I have sources. But I need to know what specific statements you are referring to.

 

[elektra]

Considering public schooling is an almost universal world-wide policy , yes. Public schooling works just fine even at college level.

How do you explain China's success in building the largest high-speed railroad network in the world in spite of being a public project?

foreign engineers

 

[Mexicano]

yes, we all understand what a payroll tax is

demand created by taxation? Americans, and the entire world can do without demand created by taxation, or inflation, as our labor produces us less.

Taxation without a corresponding spending indeed reduces production. But government spending, as a general rule, is at least equal to taxation ( most of the time it is larger).

 

[Mexicano]

foreign engineers

So why foreign engineers have not been able to do the same in the US?

 

[elektra]

Taxation without a corresponding spending indeed reduces production. But government spending, as a general rule, is at least equal to taxation ( most of the time it is larger).

you dont make sense

Government spending, as a general rule is thee most wasteful, least productive spending.