Comments on: Political strategy in the Budget Control Act era http://blogs.reuters.com/great-debate/2011/08/02/political-strategy-in-the-budget-control-act-era/ Thu, 20 Jun 2013 06:31:09 +0000 hourly 1 http://wordpress.org/?v=3.4.2 By: DocE http://blogs.reuters.com/great-debate/2011/08/02/political-strategy-in-the-budget-control-act-era/comment-page-1/#comment-35878 DocE Sun, 07 Aug 2011 18:22:43 +0000 http://blogs.reuters.com/great-debate/?p=9718#comment-35878 G'Day All, The several articles I've read indicate that raising federal income rate %s actually do more harm and raise less dollars for the US economy and treasury??!! DocE G’Day All,

The several articles I’ve read indicate that raising federal income rate %s actually do more harm and raise less dollars for the US economy and treasury??!!

DocE

]]> By: LEEDAP http://blogs.reuters.com/great-debate/2011/08/02/political-strategy-in-the-budget-control-act-era/comment-page-1/#comment-35865 LEEDAP Sat, 06 Aug 2011 02:09:37 +0000 http://blogs.reuters.com/great-debate/?p=9718#comment-35865 Hennessay, you missed the fact that automatic cuts don't begin until after the 2012 elections. Therefore Democrats will prefer the automatic trigger. They have no real leverage against the Republicans and will take the hit. Then after 2012, the new congress will have to deal with the cuts whatever way the pendulum swings. The only thing that will encourage congress to come to an agreement is to reestablish our credit rating which took a hit today. $4T in cuts are needed to fix that problem and only increases in revenue will enable that to happen. Two things stand in the way of the $4T agreement: (1) The Tea Party, and (2) Republicans who want to sink the economy so that Obama will not be reelected. @deLafayett is right, "We can best address the deficit by raising taxes on those who can most afford it". There are many approaches: increasing taxes on the rich, a value added tax, closing loopholes, and ending corporate subsidies for industries with healthy/obscene profits. It's time to recognize that the Bush/Reagan tax cuts have not produced jobs. It's really back to basics. We have to balance the budget by balancing the Government's income with it's expenses. That's $3T in cuts and $1T in income with capital expenditures in the military taking the biggest hit because they ultimately don't produce the same employment multiple as the other expenditures do. Hennessay, you missed the fact that automatic cuts don’t begin until after the 2012 elections. Therefore Democrats will prefer the automatic trigger. They have no real leverage against the Republicans and will take the hit. Then after 2012, the new congress will have to deal with the cuts whatever way the pendulum swings.

The only thing that will encourage congress to come to an agreement is to reestablish our credit rating which took a hit today. $4T in cuts are needed to fix that problem and only increases in revenue will enable that to happen.

Two things stand in the way of the $4T agreement: (1) The Tea Party, and (2) Republicans who want to sink the economy so that Obama will not be reelected.

@deLafayett is right, “We can best address the deficit by raising taxes on those who can most afford it”. There are many approaches: increasing taxes on the rich, a value added tax, closing loopholes, and ending corporate subsidies for industries with healthy/obscene profits.

It’s time to recognize that the Bush/Reagan tax cuts have not produced jobs. It’s really back to basics. We have to balance the budget by balancing the Government’s income with it’s expenses. That’s $3T in cuts and $1T in income with capital expenditures in the military taking the biggest hit because they ultimately don’t produce the same employment multiple as the other expenditures do.

]]> By: deLafayette http://blogs.reuters.com/great-debate/2011/08/02/political-strategy-in-the-budget-control-act-era/comment-page-1/#comment-35785 deLafayette Thu, 04 Aug 2011 07:19:10 +0000 http://blogs.reuters.com/great-debate/?p=9718#comment-35785 Balancing the budget at lower debt levels is a first step to balancing it completely (Receipts equal Expenses). But that is manifestly impossible for as long as America does not address its system of personal taxation. Which was radically altered when Reagan dropped precipitously marginal income taxes from above 70% to less than 30% (given deductibles). We can best address the deficit by raising taxes on those who can most afford it - progressively above incomes of $250K per annum. In fact, we need a complete revamp of an antiquated system of personal taxation. It is advisable as well to institute a national Value Added Tax that allows more predictable tax revenues particularly in times of economic distress as presently. This measure would allow a reduction in taxation at and below the median level of household income (~$46K) and would boost Consumption in that range, which is the sort of Stimulus Spending necessary to create jobs. Balancing the budget at lower debt levels is a first step to balancing it completely (Receipts equal Expenses).

But that is manifestly impossible for as long as America does not address its system of personal taxation. Which was radically altered when Reagan dropped precipitously marginal income taxes from above 70% to less than 30% (given deductibles).

We can best address the deficit by raising taxes on those who can most afford it – progressively above incomes of $250K per annum. In fact, we need a complete revamp of an antiquated system of personal taxation.

It is advisable as well to institute a national Value Added Tax that allows more predictable tax revenues particularly in times of economic distress as presently. This measure would allow a reduction in taxation at and below the median level of household income (~$46K) and would boost Consumption in that range, which is the sort of Stimulus Spending necessary to create jobs.

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