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Thread: Republicans are acting like vandals

  1. #81
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    10-16-11 @ 02:14 PM
    Very Conservative

    Re: Republicans are acting like vandals

    Quote Originally Posted by upsideguy View Post
    Actually, that is not possible.
    It is. You just pass a budget to that effect.

  2. #82
    Pragmatic Idealist
    upsideguy's Avatar
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    Nov 2009
    Rocky Mtn. High
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    Today @ 01:17 AM

    Re: Republicans are acting like vandals

    Quote Originally Posted by Badmutha View Post
    So increasing taxes on struggling business owners and employers will have no impact whatsoever.........
    Where did I speak about "struggling business owners"? Why do you insist on arguing with superlatives? It is not becoming. The extremes are almost always outliers to a point (not applicable), therefore arguing the extreme is not an intelligent retort.

    I specifically spoke of those that are doing well in the recession: those the remain in the highest tax brackets in a soft economy. Struggling owners, by definition, have a built in tax cut as they aren't making money, they either pay less tax (because they are in lower rate territory) or are not making money, in which case they accrue tax loss carryforwards, which shelter future taxes when they do make money (or carrybacks, which can be used to recover taxes previously paid). I propose increasing marginal rates on the highest tax brackets, specifically on high wages. I also suggested using job creation tax credits for people that actually create jobs.

    Quote Originally Posted by Badmutha View Post
    And if that had a grain of truth.....The Soviet Union would have been the most prosperous nation the world had ever seen.....

    Right.....a bloated and out of control liberal government spending MORE MONEY.....will surely fix our debt and deficit......
    Again, using the Soviet Union as an example is another pointless superlative. This is not the SU... government is a much smaller component of the economy. This is a silly distraction to the fact you do not understand....

    This is mind boggling! You can comprehend how extending the Bush tax cuts is helpful to a recession (so you imply, but I really doubt it), but do not understand the concept of spending multipliers? I will explain this if you can explain the other (even if you can't, which I doubt you can, I will proceed).

    Let's say the government contracts a building maintenance service. It pays the service $1000 for a month's work. Let's say the owner makes a 20% pre-tax on the business and the rest is paid to the workers that actually do the cleaning (we will leave supplies out here for simplicity)... The owner has a $200 profit. It is taxed at 30%... $60 back to the government. The worker earns $800. Payroll taxes on that are $62 to the worker and $62 to the employer... we are now up to $184 back to the government. The worker has a $800 income... after deductions, lets call it $700. That at 30% is $210.... now the government has $390 of its $1000 back. The worker, as a lower wager earner, saves nothing and consumes everything (the remaining $590 is spent).... if they paid $100 to a plumber, he pays $30 in taxes. They buy groceries with the other $494... that store has a 20% pre-tax profit, so another $30 to the the store has workers and supplies.... so the $1000 paid by the government is a $1000 in revenue to the cleaning company, $100 in revenue to the plumber, $490 in revenue to the grocery store.... and $454 (45%) in tax receipts. This is just a two tier look, it assumes everyone pays 30% to the federal government and does not consider other state and local taxes... but it is the way the system works. it is why stimulus spending works. Of course, you need an economy to continue to move money through it.

    Spending money does not fix the deficit other than it stimulates the revenue flow to the government... that will fix the deficit. $400B of revenue disappeared because the economy headed south. As my example shows you, cutting the $1000 from the government cleaning bill will have revenue consequences. it is not a $1000 saved.

    Quote Originally Posted by Badmutha View Post
    If you say so.........

    The Largets Budget in World History......
    The Largest Spending Bill in World History.....
    The Largest Omnibus Bill in World History.....
    The Largest Entitlement Program in World History........

    ....evntually they start adding up......

    ............Barack HusSame Obama--The Most Expensive President in World History.
    Even the Heritage Foundation was good enough to prove my point.... Obama was handed a $1.2T running deficit (2009 is the last Bush budget).... while it is fair to blame Obama for not fixing the problem, he did not create it.

    I now a wait your clear explanation of how tax cuts to the wealthiest of American's work to improve the economy.....
    Last edited by upsideguy; 07-10-11 at 08:38 PM.

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