Seems with all those cuts that we should not be in debt trouble... Something does not add up..

To quote a Democrat operative on Morning Joe when they tried to point out that 51% of the American public pay no federal income taxes, "They pay sales taxes and other taxes, so they do pay taxes."

 

And the greeter at WalMart pays a higher percentage of their income in federal taxes than the billionare that gets their income from capital gains, or for that matter the hedge fund manager that gets their income from performance bonuses. The current system of taxation is grossly unfair and favors the wealthy over the middle class.

And the greeter at WalMart pays a higher percentage of their income in federal taxes than the billionare that gets their income from capital gains, or for that matter the hedge fund manager that gets their income from performance bonuses. The current system of taxation is grossly unfair and favors the wealthy over the middle class.

Time for the FairTax.

In recent history the ONLY path to deficient reduction to the point of actual surpluses has been indvidual capital gains tax.

 

This can be deducted from these two websites:

 

http://www.taxpolicycenter.org/taxfacts/displayafact.cfm?Docid=200

 

http://www.cbo.gov/ftpdocs/108xx/doc10871/Chapter4.shtml

 

When did the Federal government run a surplus or run the smallest 2 deficit years in recent history ? A: 1998-2001, 2006 and 2007

 

When were capital gains more than 10% of the individual taxes: A: 1998-2001, 2006 and 2007 See this chart from the CBO website that is part of the URL above:

 

http://www.cbo.gov/ftpdocs/108xx/doc10871/Chapter4.08.1.09.png

 

What have capital gains taxes been in the last few years? In 2009 it was 6.5 percent.

 

When you look at years where capital gains made up between 9 and 10 percent of individual taxes (1997, 2005 and 2008) you find very low deficits in 1997 and 2005 but the spending train had already started in 2008 (and that would be under....GWB!) and so 2008 had the start of higher deficets but it was not a revenue problem.

 

So the ONLY mechanics that have lead to deficit reduction to the point of surpluses are:

 

1) Controlled spending

2) High individual capital gains tax receipts

 

 

History shows that nothing else works. So the 'deals' politicians make with short term rates to deal with this are folly and foolish.

 

What is needed is :

 

a) controlled spending (and we do not have that!)

b) a hot stock market where people feel good selling and trading stocks, taking taxable gains and buying other stocks (and we do not have that.)

 

Sorry, but our political leaders can fiddle and even create beautiful music while they do it. But without reduced spending and higher capital gains revenues - Rome, or rather the US, will burn.

Edited July 14, 201115 yr by Bluegrasscard
minor sp

I've noticed that in the years capital gain taxes were cut that revenue to the fed increases... When capital gains are in increased, revenue declines..

I've noticed that in the years capital gain taxes were cut that revenue to the fed increases... When capital gains are in increased, revenue declines..

 

Maximizing capital gains revenues should be a primary goal of any effort. Obviously, if you cut capital gains taxes to 0, there is 0 revenue. So just cutting is not the answer. But 'optimizing' capital gains tax revenues should be a focus since it is the one of the few, if not only, 'uncapped' tax sources.

I haven't read the article. Is the tax increase number they are using the dollar increase in government revenues or is it a % tax increase. I would say it is revenue, because Regan cut most tax rates for everybody and it resulted in higher revenue to the government.

 

Seems the implication is that Reagan raised taxes. He did not. He did increase revenue. And congress spent like crazy.

I haven't read the article. Is the tax increase number they are using the dollar increase in government revenues or is it a % tax increase. I would say it is revenue, because Regan cut most tax rates for everybody and it resulted in higher revenue to the government.

 

Seems the implication is that Reagan raised taxes. He did not. He did increase revenue. And congress spent like crazy.

Read it it takes all of 5 minutes !

And the greeter at WalMart pays a higher percentage of their income in federal taxes than the billionare that gets their income from capital gains, or for that matter the hedge fund manager that gets their income from performance bonuses. The current system of taxation is grossly unfair and favors the wealthy over the middle class.

 

Doubtful that the greeter at Walmart pays any federal income tax at all. Don't confuse social security taxes with income taxes as that is heavily in favor of the lower income earners. I disagree with the rest of your post also.

Doubtful that the greeter at Walmart pays any federal income tax at all. Don't confuse social security taxes with income taxes as that is heavily in favor of the lower income earners. I disagree with the rest of your post also.

 

You will notice that I didn't mention income taxes. Capital gains are also a different animal.

And the greeter at WalMart pays a higher percentage of their income in federal taxes than the billionare that gets their income from capital gains, or for that matter the hedge fund manager that gets their income from performance bonuses. The current system of taxation is grossly unfair and favors the wealthy over the middle class.

 

What is at risk when you work for a paycheck? Can you lose you your paycheck due to no fault of your own at the end of the week? Is there a 50/50 chance you will not get paid after putting in 40 hours?

What is at risk when you work for a paycheck? Can you lose you your paycheck due to no fault of your own at the end of the week? Is there a 50/50 chance you will not get paid after putting in 40 hours?

 

Are you suggesting that's a regular risk for wealthy folks?

Are you suggesting that's a regular risk for wealthy folks?

 

Not sure who he was talking about but investors bear huge risks, as do business owners. Not sure what he means about the 50/50 chance though.

What is at risk when you work for a paycheck? Can you lose you your paycheck due to no fault of your own at the end of the week? Is there a 50/50 chance you will not get paid after putting in 40 hours?

 

Actually the answer is YES. I've watched many local industries in my area for 15 years do just that.

 

Tultex literally closed the plant on an afternoon at 3 pm, locked the gates, and some 1700 people lost pay, pensions, vacation leave, sick leave and their jobs.

 

A local Homes Builder did the same thing.

I've noticed that in the years capital gain taxes were cut that revenue to the fed increases... When capital gains are in increased, revenue declines..

 

Did you read post #19 above you? His presentation shows just the opposite.