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kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 09:46 AM
Original message
The elephant in the room...
Everybody wants to cut the deficit. But nobody wants to talk about the primary reason we have the deficit. The lack of tax revenue. Taxes were cut dramatically in the last 30 years. All kinds of taxes. But they kept on spending. Ergo, the deficit problem.

The last taxcuts, in 2001 and 2003, sent our debt and deficits into freefall. Then when Old Mother Hubbard went to the cupboard, the cupboard was bare. When we needed to spend money to get our economy going again, there was no money there. Those taxcuts doubled our national debt and left us with a deficit of over $1 trillion dollars in January of 2009.

So they started looking everywhere for places to cut the deficit. But they over-looked the elephant in the room, tax increases. No politician dares to mention that necessity. They even speak of the expiration of the Bush tax cuts as a "tax increase" and politicians run for the tall grass.

The old saying about having to spend money to make money is never more true. Not only should the Bush taxcuts be allowed to expire, but there should be other taxes considered as well. They should look at taxing Wall Street and those folks primarily responsible for putting us into this financial pickle we are presently enduring. They should look at a tax on gasoline and the Big Oil companies, who robbed us blind with over $4 per gallon gasoline not so long ago.

And if they are serious about the deficit, they would look at taking the cap off FICA taxes also. Since they are now using the fund as general revenue, how is that any different from any other income tax? Other than the regressive nature of it.

Don't tax you. Don't tax me. Tax that man behind that tree. Everybody wants to go to heaven but nobody wants to die.
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SammyWinstonJack Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 09:59 AM
Response to Original message
1. K&R
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raccoon Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:10 AM
Response to Original message
2. K&R. One more puts this on Greatest, yall! nt
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mmonk Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:13 AM
Response to Original message
3. Yep.
The tax cut cult has virtually destroyed any possibility to advance or dig ourselves out of the mess.
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CrispyQ Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:16 AM
Response to Original message
4. Taxes are what we pay for a civilized society.
Americans get so caught up with worry that someone might get more than they got or someone might get something they don't deserve, while the corporations are robbing our Treasury blind with their tax cuts & tax incentives. We happily support these cuts & incentives, because we've swallowed the lie the corps create jobs. Too often however, the dollars in tax cuts/incentives the corps get far out weighs dollars in jobs created.

Jim Hightower has a superb article on this in the archives of his Hightower Lowdown. It was an eye opening read.

I couldn't fine Hightower's article, but evidently this guy has written a book about it. http://www.greatamericanjobsscam.com/press-release.pdf
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BeFree Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:24 AM
Response to Original message
5. Yep
"...Since they are now using the fund (SS)as general revenue, how is that any different from any other income tax.."

A minimum wage worker pays more in percentage than a millionaire.

That is regressive and totally unfair. Instead, we should see to it that a millionaire pays more as a percentage.

If a min. wager pays 10%, a millionaire should pay 11% on ALL income. That is the only way out of this hole.
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unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:27 AM
Response to Original message
6. not everybody wants to cut the deficit.
plenty of wise economists say now is a TERRIBLE time to cut the deficit. some say it's even a terrible time to even TALK about cutting the deficit.

SPEND MORE NOW to get the economy moving and THEN we can talk about cutting the deficit.
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kentuck Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:31 AM
Response to Reply #6
7. It's always a bad time to cut the deficit or raise taxes...
If we raise taxes when the economy is good, it may kill the recovery. If we raise taxes while the economy is bad, it may make it even worse. There is no good time to raise taxes if we listen to the "experts".
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unblock Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 11:14 AM
Response to Reply #7
9. only if they trot out different experts at different times.
reasonable economists will say that when the economy is doing well, you should cut the deficit and maybe even run a small surplus, in order to keep the deficit within a certain range as a percent of gdp.

anyone other conclusion is really more political economics than straight economics. i.e., they have an agenda.

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DirkGently Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:38 AM
Response to Original message
8. Closing corporate loopholes and oil subsidies might be

a start.
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Steely_Dan Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 11:17 AM
Response to Original message
10. Dare I say...
I agree. We need to bite the bullet.
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Stinky The Clown Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 11:28 AM
Response to Original message
11. Perfectly well said
This elephant remains because of political cowardice at all levels.
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yellowwood Donating Member (550 posts) Send PM | Profile | Ignore Thu Aug-26-10 11:34 AM
Response to Original message
12. No!
The reason that we owe so much money is that we continue to engage in these futile wars of empire.
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Kablooie Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:20 PM
Response to Original message
13. But the GOP says if we cut taxes more, the deficit will disappear. They are right, aren't they?
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MrScorpio Donating Member (1000+ posts) Send PM | Profile | Ignore Thu Aug-26-10 10:23 PM
Response to Original message
14. Eat the rich
Please pass the Grey Poupon
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