I prefer reducing taxes and reducing spending.
United States Biden administration policies and actions - megathread
- Thread starter Tyzuris
- Start date
SoliFortissimi
Well-known member
And I prefer living in a post-scarcity Utopia.
And increasing taxes doesn't do that
strunkenwhite
Well-known member
The plan "cut taxes -> revenue stays the same or increases" hasn't worked ... unsurprisingly.
The plan "cut taxes -> deficit scares people -> cut services in line with reduced revenue" hasn't worked, despite a literal lifetime of trying.
That's why I'm ready for plan "increase taxes -> people realize how much their services actually cost -> cut services in line with people's unwillingness to actually pay the cost of those services".
Some argue that the debt doesn't matter and never will no matter how big it gets, but I'm ... skeptical.
Buba
A total creep
And there never will be. This is the effect of universal suffrage. At some point you get "representation without taxation" i.e. a SPQR type of proletariat which lives on State handouts. Such people vote for the politicians who promise (and deliver) handouts funded by taxes from people who DO care to work.
SoliFortissimi
Well-known member
That's not physically possible.
No, what will happen is that inflation will spike because the government prints dollars to pay the interest. In the long term, even basket cases like Greece tend to fix their economies after a sufficiently traumatic shock.
Im personally thinking were going to see mass defaults on debts coming with in our life times.
Quite simply put most countries on the planet are over burdened with debt so it will probally get to the point where a whole bunch of them just default on said debts.
SoliFortissimi
Well-known member
Not unless we see a lot of disastrous black swan events.
actually is has, but it's always seen by the idiots in charge as an excuse to spend more to match.
Except that never happens b/c then "gibs us mowr!" is the cry.
Ditto. No...wait...I'm definitively against.
mrttao
Well-known member
yes it has. how young are you?
do you even remember the last time taxes were cut or are you just repeating fake news spewed by democrats?
prinCZess
Warrior, Writer, Performer, Perv
Just to add to this.
Excel-table from the IRS of total collections per year (remember this is just IRS collections). 2016->2019 saw consistent growth in collections (from 3.33 to 3.56)--both in total of IRS collections, and in specific of 'just' income taxes themselves. We can almost-certainly attribute the decrease from 2019-2020 to Wuhan flu and its consequences.
Excel-table from the Congressional Budget Office of total revenues. These also saw consistent increase until 2019-2020 for what can almost-undoubtedly be the same cause.
It is absolute economic no-brainer to continue reducing taxes broadly (and in particulars of taxes by more specific tax type) until such time as revenues decline from those obtained the previous year--those are blatant productivity sucks. You could undoubtedly dig in further to income by tax brackets (at least in the case of the IRS results) to determine which brackets would benefit versus those which may need individual adjustment *upwards* (though it is and should be a higher bar to clear to demonstrate not enough 'suck' is being induced...giggety?).
There remains argument about whether downward adjustment even WITH lowered year-to-year revenue could still be worth it, since economic growth and investment does tend long-term and not short in terms of most effective/paying-off--so you have tax policy a decade ago influencing revenues today, and long-term certainty of what tax policy will be itself certainty also has its own heap of benefits (in fact, as much as the terminology rankles me and it is impractical, a 'ten year plan' of taxation that remains would be their own economic benefit--but, nature of the US system, that's hard to impose/achieve since Congress can change it at any time and really should be able to as well).
strunkenwhite
Well-known member
The problem may be the opposite. As I remember the story, Reagan passed one of the biggest tax decreases ever ... then passed one of the biggest tax increases ever in a panic when revenues did not meet expectations.
Then there were the Bush (the Younger) tax cuts which were roughly at the time the Afghanistan and Iraq wars started.
I admit the Trump tax cuts don't show the same revenue reduction on the Excel sheet prinCZess cites. I'll try to remember to look into it.
And,as a result,about 2040 all USA taxes would go for paing interest on debt.
Check this tweet out on outgoing US Attorney General Merrick Garland:
ABC News Live Coverage of President Biden addressing the nation from the Rose Garden of the White House.
NBC News Liver Coverage:
NBC News Liver Coverage: