GOP 2012 budget to make $4 trillion-plus in cuts

Conservative said:

No, like all the revenue that was generated when the Reagan tax rate cuts were put into place. Federal Income tax revenue doubled, how do you explain that? People and businesses keeping more of their money stimulates the consumer driven economy and creates new taxpayers. That is what liberals never understand. There has to be incentive to create jobs and economic growth does that.

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A lot of middle class deductions went away when the tax rates were reduced. Do you remember that?

Dittohead not! said:

A lot of middle class deductions went away when the tax rates were reduced. Do you remember that?

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Yes like interest deduction on Credit cards but what does that have to do with people keeping more of their money. So they lose deductions but have more income on each paycheck? I enjoyed it, paid down personal debt and thus credit purchases.

Hugh_Akston said:

A flat tax would eliminate the IRS, eliminate the gargantuan tax code, eliminate loopholes that companies like GE utilize and everyone pays their fair share. Everyone pays the same percentage on what they purchase. You purchase more, you pay more in taxes.

I figured out roughly what I would be paying a couple of years ago. I would be paying about $450-500 more per year in taxes and the government would save billions by eliminating the IRS. It's a win-win for government (more in revenue generated from taxes and eliminating the money pit that the IRS is). Of course the "tax the evil rich bastards" crowd would never go for such a thing, even though it makes complete sense and saves the government billions per year while generating more in tax revenue.

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First of all when most people talk of a flat tax, they are talking about individual taxes not corporate taxes so not sure what you are saying regarding any corporation let alone GE which generates much of it's income outside the U.S. so probably would not be taxable here.

As to your calculation wonder how you did that. First of all most flat tax proposals will still have some sort of personal exemption, which would be a large source of debate so what you used here may or may not be right or close to right. Also a flat tax is still a rate, who knows what rate government will use. Lastly circumstances change for any individual. So for example if you were a renter when you calculated, and now own a home then losing the mortgage deduction would make a big change, same with if someone had high medical costs in a year or gave a lot to charity.

People think of deductions as lookholes. Many are. Others are there for social or economic prurposes. Again in the mortgage deduction example. If you or anyone is a homeowner have you included in your calculation the loss in value in your home as mortgages will now be an after tax event versus a before tax item.

Every hard problem i.e. tax revenues has a thousand easy answers, most of which are wrong.

Councilman said:

I see this as a good thing but I also know that if cuts are too deep too fast it can have a negative impact on the economy.

I also don't want to see individuals hurt by unreasonable cuts in some social programs.

Don't get me wrong I still believe as I have said before that many of these programs do their very best to make people dependent on them and they kill individual incentive for people to do better.

If the right balance can be maintained, I believe that the prospect of a balanced budget or even a serious attack on the deficit will have a positive affect and encourage people and that always has a positive affect on the Stock Market and therefore the economy and job market as a whole.

We'll now see the reaction of the Left

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The GOP recommended the cuts it wanted to keep its welfare programs running. . .

Speaker Boehner Votes with Big Oil After Taking $437k in Industry Cash | Public Campaign Action Fund

Conservative said:

To a liberal rate means more than dollars collected because liberals ignore personal behavior and incentive. To a liberal when rates go up individual behavior never changes as they ignore reality. Reagan cut income taxes 10-10-5% over three years and Income tax revenue almost doubled. Liberals say that when you cut taxes 10% that nothing changes in behavior and revenue goes down. Facts simply are ignored.

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No, liberals do not say that.

Dittohead not! said:

A lot of middle class deductions went away when the tax rates were reduced. Do you remember that?

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hilarious. mind you, the wealthy and middle class both use those tax deductions; and the rich get a larger dollar amount. what would we hear people screaming if the Republicans were putting them in instead of taking them out?


TAX CUTS FOR THE RICH!!!!




....but since we're removing them.... suddenly people have noticed that taxes effect the middle class, too...

Deuce said:

No, liberals do not say that.

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Then you aren't paying any attention