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Thread: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    uh, oh, reality again

    WRAPUP 3-U.S. Senate Republicans firm on tax cuts for rich | Reuters

    trolls everywhere wonder---when's the vote?

    do you think it will come BEFORE the election?

    AFTER?

    trolls like jiltin joe lieberman, ben stiffneck nelson, bye bye evan bayh and the BUDGET CHAIR have their opinions

    they said em all OUT LOUD

    so did jim matheson, glenn nye, gary peters and melissa bean, certainly WRITING for many others

    how you gonna make REAL these chin stroking RUMINATIONS without them?

    hmm?
    Last edited by The Prof; 09-13-10 at 09:16 PM.

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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    I heard that the latest CBO report says that the budget could come back into surplus by 2012, but it would require, that the Bush tax cuts would have to expire at the end of the year.No link as of yet.
    The haggardness of poverty is everywhere seen contrasted with the sleekness of wealth, the exhorted labor of some compensating for the idleness of others, wretched hovels by the side of stately colonnades, the rags of indigence blended with the ensigns of opulence; in a word, the most useless profusion in the midst of the most urgent wants.Jean-Baptiste Say

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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    can those who want only the rich to lose the BUsh tax cuts tell us what good will come from that

    and lets not trot out the nonsense about fairness-the top 2% pay almost half the taxes but don't make nearly half the income

    and electing dems is not a legitimate answer

    how is the country helped by making the burden of taxes more and more the province of the rich

    I cannot think of anything

    and for those who constantly pretend that the top 1% don't pay 40% of the taxes here are the latest figures I could find

    The Tax Foundation - Summary of Latest Federal Individual Income Tax Data



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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    Quote Originally Posted by donc View Post
    In answer to your two questions.

    1. Where do rich people save money?=There has been a lot of money going into dividend paying blue-chip stocks lately.
    2. When people start pouring money into mutual funds and stock portfolios, what happens to the broader market?=Then your blue-chip stocks start going up and it is time to look into some growth stocks.
    My point is that the result of those high earners saving more appears to be a condition that leads to those same high earners spending more. If true, it seems a bit difficult to argue that said actions don't eventually lead to spending.

    Moreover, the article doesn't really address the republican argument. Republicans don't appear to be arguing that they lead to spending so much as they argue that they lead to investment. The underlying study supports that.
    People sleep peaceably in their beds at night only because rough men stand ready to do violence on their behalf.

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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    Quote Originally Posted by donsutherland1 View Post
    IMO, one has to be careful about overgeneralizing. Tax cuts are a good remedy for addressing supply shocks. They are quite ineffective in addressing demand shocks.

    In general, tax cuts are a supply side remedy. Low-income persons, who have a higher propensity to consume, will spend a greater share of their tax relief than wealthier persons. Wealthier persons will invest the capital, reducing the overall cost of capital for business formation/expansion (the supply side). Such an approach was ideal for the early 1980s when the nation needed to expand aggregate supply so as to help ease inflationary pressures (too many dollars chasing too little supply).

    Tax cuts are not an effective demand side remedy and the 2007-09 recession represented a substantial demand shock. Hence, if one is seeking to stimulate consumption (aggregate demand) in the face of uncertainty, increased fiscal expenditures e.g., on infrastructure will provide far more bang for the buck than tax cuts. Tax cuts will merely be pocketed by risk-averse recipients, not spent. Not surprisingly, when CBO released data on multipliers from the fiscal stimulus' various provisions, tax relief measures generated, on average, much less impact (typically <$1 for every $1 of tax relief) than direct spending measures (e.g., infrastructure spending, which generated much more than $1 in economic activity per $1 of expenditure).
    what benefit does jacking up taxes on the top 2% do

    and if most people don't face higher taxes no matter how much the government spends why would those people ever want the government to spend less?



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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    Quote Originally Posted by RightinNYC View Post
    My point is that the result of those high earners saving more appears to be a condition that leads to those same high earners spending more. If true, it seems a bit difficult to argue that said actions don't eventually lead to spending.

    Moreover, the article doesn't really address the republican argument. Republicans don't appear to be arguing that they lead to spending so much as they argue that they lead to investment. The underlying study supports that.
    If the Republicans are contending that, then maybe that is the point of the article that they are investing in dividend paying stocks, instead of CD,s or anemic bonds.
    The haggardness of poverty is everywhere seen contrasted with the sleekness of wealth, the exhorted labor of some compensating for the idleness of others, wretched hovels by the side of stately colonnades, the rags of indigence blended with the ensigns of opulence; in a word, the most useless profusion in the midst of the most urgent wants.Jean-Baptiste Say

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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    Quote Originally Posted by donc View Post
    I heard that the latest CBO report says that the budget could come back into surplus by 2012, but it would require, that the Bush tax cuts would have to expire at the end of the year.No link as of yet.
    When you factor in tax hikes, the unemployment rate and the current government spending, there's no way that a surplus can occur.

    As long as the Bush tax cuts aren't extended to corporations, the economy is going to stay in the crapper.
    Quote Originally Posted by Top Cat View Post
    At least Bill saved his transgressions for grown women. Not suggesting what he did was OK. But he didn't chase 14 year olds.

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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    Quote Originally Posted by apdst View Post
    When you factor in tax hikes, the unemployment rate and the current government spending, there's no way that a surplus can occur.

    As long as the Bush tax cuts aren't extended to corporations, the economy is going to stay in the crapper.
    the real reason behind the dem plans is obvious

    to get votes by appealing to class envy. no one can honestly believe jacking up taxes on 2% of the voters is anything more than an appeal to the majority

    if the dems were serious about doing something about the deficit they would be demanding everyone pay more taxes as well as looking at seriously cutting spending

    of course cutting spending or raising taxes on the majority of people would kill them in the next election (or kill them even more)

    by telling most people that they won't have to pay for the deficit, they buy votes but do nothing to really help the situation

    if you were to waterboard most of those who call for tax hikes on the rich, the only truthful answer you would get from them is such a scheme helps dems win elections or that they dislike the rich

    if you read the nonsense from poeple like Krugman-well educated economists who use their status to advance their own agendas and then pretend its based on an objective observation you will quickly find that the main argument goes like this

    The rich have done better than the middle class (the rich ALWAYS do better than others-that's why they are rich) so they need to be punished

    when you ask them how punishing the rich helps the COUNTRY you get, the Middle class has been hurt

    you never get much of an answer as to how it actually helps the country objectively



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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    apdst

    When you factor in tax hikes, the unemployment rate and the current government spending, there's no way that a surplus can occur.
    Your probably right that was most likely some bean counters wet dream.


    As long as the Bush tax cuts aren't extended to corporations, the economy is going to stay in the crapper.

    But according to this, the rest of your post is wishful thinking.




    < The federal deficit is running significantly lower than it did last year, with the budget gap for the first half of fiscal 2010 down 8 percent over the same period a year ago, senior Obama administration officials said Monday. >


    < If the trend continues for the rest of the year, it would mean the annual deficit would be $1.3 trillion -- about $300 billion less than the administration's projection two months ago for 2010. >

    Obama team points to smaller deficit numbers
    The haggardness of poverty is everywhere seen contrasted with the sleekness of wealth, the exhorted labor of some compensating for the idleness of others, wretched hovels by the side of stately colonnades, the rags of indigence blended with the ensigns of opulence; in a word, the most useless profusion in the midst of the most urgent wants.Jean-Baptiste Say

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    Re: Rich Americans Save Tax Cuts Instead of Spending, Moody's Says

    pulitzer paul (i know, but it doesn't alliterate) krugman is the picture photograph of effete

    econ 101---you don't raise taxes in the middle of a recession

    econ 101, emeriti

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