Re: Tax Mythbuster Speaks Out - Will a Tax Increase make a difference...
If you cut spending too much...you risk a double dip recession.
If you raise taxes too much all at once...you risk a double dip recession.
Has to be a good balance of both. Heard this from several economists.
I'm not an economist but I play one on the Internet. :toung:
Guess we all do
Baloney. Government spending doesn't drive our economy. Private sector does.
IMHO, The solution is threefold.
1 - Even out taxes for everybody - that means that some get a lower tax break while others will have theirs increased. It's going to be painful when we first do it, but the long-term benefits are worth it. Start out at 10%. You are taxed on the total amount you make in the year, to include overseas holdings. Example: somebody made $50k, had $3k increase in their 401k / savings accounts, and they sold a house for a profit of $10,000. They're taxed 10% on $63k, or $6,300. In exchange, get rid of all federal-level taxation rules. This means no death taxes, no real estate taxes, no sales taxes, etc. You pay to the government only once, or by deductions in your paycheck.
2 - Cut spending across the board by a certain percent. Start with 10%. Nobody is immune. No sacred cows. All programs take a 10% cut, so everybody feels the pinch. No increases in spending, no increases in the debt ceiling except to adjust for inflation.
3 - The Flat Tax rate can be increased or decreased, but only via popular vote, and only by 0.5% at a time.
Do this for 2 years, then let's see where we stand. If that's enough, then we stop right there and carry on. If we need to cut spending more, then we do that. If the populace votes to increase revenues, then they can do that as well.
If at first you don't succeed, redefine success.
You can't outrun Death forever, but you can make the b&stard work for it.
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