Flame — HabitableZone

Flame » in reply to Re: Government

Consumption Tax !?
RobVG — (archived)

Now I know you've been smoking crack.

A tax system should be broad based. A sales tax is a bad Idea because when the economy starts to take a nosedive, people tighten their belts, its not as elastic as you think but even if it were, raising and lowering taxes like a yo-yo is not good fiscal policy. Your aim is to decrease the amplitude and frequency of economic cycles- not exacerbate them. (one of my favorite words)

Which brings me to this. I think the bush tax cuts are horseshit and I can say that now I'm way down here on page 2 of the flame board. I personally doubt the cuts will do what they were intended to do. The only "benefit" I can see is driving the dollar down due to increasing red ink thus lowering the trade deficit. Instead of cutting taxes, He should have frozen them for the duration of his term and promised to freeze them for another 4 years if elected again. Everything in the economy runs on expectations, and businesses and Individuals would know what to expect. Let the coming increases In the CPI whittle away at taxes.

What really pisses me off is that when the economy was cookin' my state was running big surpluses and was faced with the challenge of how to spend it. Now, because of the recession and the fact we rely heavily on sales tax revenue and demand for state services have increased because of said recession, we have a 2 billion dollar deficit. Those surpluses should have been put into reserve for just such a situation like the one we are faced with now.

I think the federal government should do just that. Except there could never be a reserve because of the $6.4 trillion dollar monkey on our back. We spent over $300 Billion on interest payments alone last year. There's our defense budget right there.

Some day, it will be written off as bad debt expense. But at what price?

End Of Rant

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