What's Your Idea on Taxes and the Deficit?

I think we could be debt free right now if previous administrations had raised taxes instead of going for deficit spending.

Hold on, are you saying that the current debt/deficit crisis is because of previous administrations? Are you saying the current one isn’t hugely responsible for the financial state this country is in??

I think he’s referring to previous administrations adding to the national debt.

Heh, nope. I did to college for accounting, but I escaped before it permanently scarred my brain :)

A booming India and China can only be good for the U.S. in the long run.
America’s economic strength relative to the rest of the world will decrease, but having billions of new consumers for American high tech exports will be a gigantic shot in the arm.

Perhaps you’re not familiar with the trade deficit?

I think we are down to arguing definitions of a common phrase now, so I shall concede. You have disagreed with my argument and rebutted by restating my original argument, which just means I probably expressed myself poorly to begin with.

Are you insinuating that a wealthier China will increase America’s trade deficit? A growing Chinese economy will gradually lead to wealthier Chinese people and only increase their demand for foreign goods, and decrease the attractiveness of moving jobs over to China to make stuff to import back to the U.S.

I can’t see a justification for how a more competitive China & India is bad for the U.S. Who gives a shit if America’s relative wealth takes a dive, as long as the absolute wealth keeps increasing?

I recommend you set fire to all the houses in your buddy’s neighborhood; and when he complains to you about it as the flames draw closer to his yard, ask him, “What do you care? It’s not your house that’s on fire.”

Perhaps you’re not familiar with the trade deficit?

He might not be, but I’d wager that neither are you based on this quote.

Um, you guys know the reason our trade deficit is so high is that our federal deficit is so high, right? It’s not like these things exist in a vacuum; they’re all connected.

The fed has to keep interest rates higher than they would otherwise to ensure the government’s bonds sell; this attracts foreign investment. Ironically, the Chinese buying them all actually saves us some money, because they’re not picky, and doing it for domestic stability reasons. Even funnier is that we can devalue the lot of them with inflation if we want. The entirety of net foreign investment from all countries in India for 2004 was 26 billion. Which is basically jack, compared to total US investment.

  • Our competitors - India and China - are growing by leaps and bounds.
  • In fact, both outranks the United States in terms of preferred places for future investments.

Nothing wrong with the first, and I’m not sure how they’re “competing” with us. China is running a trade which means their net investment from the rest of the world is negative. India’s net foreign investment annually is like 20 billion or so, which is a drop in the worldwide investment bucket.

Another fun fact: if you think about it, when you run a deficit it’s not like you get the spending for free. You’re just taxing future income to pay for current spending. Either through higher interest rates now, which hold down growth and thereby future income, or just future higher taxes to pay back the debt, it’s less income tomorrow for more spending today.

Decreasing spending:

  • Kill all industry subsidies (by “industry”, I intend to exclude general endeavors like art and science but still include business models like energy, farming, and manufacturing).
  • Legalize marijuana, release all the MJ-only convincts, shut down that much of the entire DOJ/FBI/enforcement/courts system, and tax it as a cash crop.
  • Get the fuck out of Iraq, however possible.
  • Fiat some money to start buying back some of those debts (maybe?)

Increasing revenue:

  • Double gas prices (or so), where all the new amount is taxes.
  • Double cigarette taxes to assist in paying for health care.
  • Implement “cap and trade” like Jason said. <-- yes, I agree with him once ;)
  • Implement a no-loophole federal estate tax for inheritances larger than, say, $10M.
  • Change the 15% capital gain tax back up to where it was.
  • Remove all the bajillion tax exemptions for businesses (like investing in another business makes your gains 70%+ tax free, etc).
  • Let all the illegals in on work permits and tax their income.
  • Double or more the yearly limits on pre-tax retirement accounts (IRAs, SIMPLE/SEPs, etc) to insure more saving now and more revenue in the future.
  • Sell Texas back to Mexico.

OK, that last one was a joke. or was it?

Texas is highly profitable, why not sell some of the loss leaders?

Shift6 for President.

I never understand the ’ i hate taxes’ thing. Look the Gov. has to run right? So we have to pay to make it run…I’m good with that.
Of course I would pay more taxes, if we could dictate where our $$$ are being spent. Like say my cash to education and not a B2 Bomber.

My pops used to do something similar. He would start with the size of the annual budget (in dollars). He would then look up a chart to see what portion of taxes is paid by personal income tax (as opposed to sales, tariffs, businesses, etc); let’s say 50%. Then he would look at a general breakdown of what percentages of the entire budget went to what areas of government, and whatever programs/areas he agreed government should spend on, he would include it; let’s say 60%. Finally, he would divide by the most recent census to arrive at what he felt obligated to pay.

So if we assume a budget of like $1 trillion x 60% x 50% / 250 million = $1200. He would work his taxes (usually leaving out extra deductions) to pay this much for each member of our family.