How Can One Possibly Support Obama's Economic Policies? - Page 18

Originally Posted by MJ1970

Possibly. This idea actually originally came from Eric Cantor. It might actually pass. But the Democrats were pretty widely opposed to it. They wanted "real" deficit reduction measures...like spending $800B on "stimulus" programs.

While I'd love to see this happen and I'm all in favor of nearly any government spending reduction. This is a barely a drop in the bucket. Furthermore, from what I've read, there are so many ways around this that its unlikely to even have the projected impact.

Real deficit reduction will have to involve going after the welfare/warfare state with an ax. There's really no other long-term solution. The numbers tell the story. You could eliminate all so-called "discretionary" spending (which includes 100% of the defense budget) and you'd still be in deficit. I mean I'm all for cutting all of the bullshit stuff government does and I'm all for laying off government employees and freezing or cutting their pay. But these things are merely fingers in the hole in the dike.

Originally Posted by john galt

What's disturbing about Washington is that there exists two camps with opposing beliefs. Some espouse an amalgam of both, but none of these ideas will be beneficial.

One camp advocates spending cuts, which are obviously required for all the obvious reasons. However, the painful reality is that such cuts will necessarily slaughter herds of sacred cows for which their advocates will unleash hell on Earth.

The other camp advocates tax increases, generally in the form of income, capital gains and estate tax increases that are anticipated next month. This is a chimera for many reasons, not the least of which is that such tax increases never, ever result in the revenues anticipated. IF they are to expire, we'll be reading for months on end how Treasury revenues aren't appearing "as expected". How many times in the last four years have we heard how "economists" both inside and outside of Washington are surprised by economic reports month after month?

If I am threatened with tax increases I will do everything I can to avoid it. I won't pay one extra penny in taxes. Not one. I will transfer my wealth to the smallest possible paper denominations and burn it in one big bonfire before I'll give it to the government. I'll invite my friends and we'll have a big party. If the estate tax comes back I guarantee you the last obligation paid by my estate will be to the IRS - and it will bounce.

Why? I refuse to support the principles that have contributed to this country's economic destruction. Will everyone do this? No, but I assure you - I'm not the only one. Estate tax revenue is an illusion. As for the income tax, it's created a different kind of hell on Earth - the misery we're living with now, which will certainly worsen until it's eliminated.

I'm all for spending cuts, but the most draconian cuts imaginable won't address the deficit. Forget about tax increases too. History has proven they don't work.

So it would appear a dilemma exists - neither spending cuts nor tax increases will address an unsustainable deficit. That which is unsustainable cannot be sustained - look at the housing market for one recent example.

No one in Washington understands, but nearly everyone in business does - what's needed is to grow the economy. Increased GDP is the only solution. If I were only permitted to keep the money I earn, rest assured I'd have no interest in burning it. I'd spend it, invest it, or give it away to charitable causes I deem worthy. I'll be damned if I let some government bureaucrat decide what to do with my money. If it weren't so difficult and expensive to do business in the United States, who knows how successful we could be.

Cut taxes. Kill the income tax. It is no damn business to anyone what I earn. Find another way to raise Treasury revenue - there are many - and then the government damn well better use it responsibly. You will see economic growth and wealth creation like never before in history.



That would quite a bonfire too. Take the heat and use it for "green energy"

Originally Posted by john galt

This guy gets it: There's No Escaping Hauser's Law: Tax revenues as a share of GDP have averaged just under 19%, whether tax rates are cut or raised. Better to cut rates and get 19% of a larger pie.



I think I just said that.



Perhaps that's you...?



Why is this not obvious? Obama and his legions of economic advisers seem to think wealth is some kind of natural resource to be tapped and showered upon society. Wealth doesn't merely exist; it must be created. It is not created by government. It is not created by fiat. It can only be created by Man, acting in his own self-interest. It is not created in a vacuum, and does not exist there.

History shows that reductions in marginal income and business tax rates results in the same 18 to 19% of GDP collected by the Treasury. It's been that way for decades. If GDP grows, they'll still collect the same 19%, but that 19% represents a whole lot more dollars. You'd think big-government advocates would like that idea... so why don't they? Personally, I think they're just dumb as fence posts. Isn't grammar school algebra a prerequisite for a degree in economics?

What about capital gains, the type of wealth created as a result of placing one's capital at risk, the kind that other use to grow their businesses, hire people, create products and services for the benefit of mankind?



You think they'd learn by now, but no...



I think I just said that.