Law School Discussion

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« on: December 09, 2005, 03:08:28 AM »
:)

twelvehundred

Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #1 on: December 09, 2005, 07:40:46 AM »
It is a tough concept for most people to grasp, but cutting taxes often leads to increased tax revenue.  It's basic economics.  Additionally, this current tax cut only reduces taxes that should be completely eliminated (IMHO).  The double taxation that occurs on dividends and other capital gains is unfair.

twelvehundred

Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #2 on: December 09, 2005, 12:20:34 PM »
It's just like price theory for business.  Do you think a company will maximize profits by charging the most?  No.  They maximize profits by striking a balance between price and quantity sold. At any given point, lowering prices may increase total sales and improve profits.  This holds true for taxes as well.

ImVinny!

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Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #3 on: December 09, 2005, 05:05:47 PM »
Giving tax cuts lets people put some more of their money into the economy. It actually helps things out. Plus, we shouldn't have as much taxes, people need to take care of themselves.

Julie Fern

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Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #4 on: December 09, 2005, 05:41:38 PM »
yes, same people whmo think they entitled to everything because they already makiing so much money.

why not just abolish taxes altogether?

Freak

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Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #5 on: December 09, 2005, 05:53:27 PM »
I don't care it helps the deficit or not. It's my money, if I want to give to the poor, I will (and do). It enrages me that we pay nearly 1/2 our income in taxes. Think of it this way. You work 4 hours for the government for every 8 hours you work!

Dispute the 50% if you want I haven't done all the math, but it's close. ~28% income tax, state income tax (not all states, but a lot), social security, medicaid, medicare, sales tax, property tax (ya you pay it even if you rent), licenses and fees, corporate tax (ya you pay some of this too, they pass along most of it). Then they hit you w/estate tax when you die.

Let's put it this way, the colonists paid no where near 25% tax when they revolted from the British. True they were mad about the lack of representation too, but taxes triggered the revolt.

We spend to much granted, but if the government doesn't go broke they won't stop spending.

If representatives ever figure out that they can bribe voters with their own money... - Alex de Tocqueville

_BP_

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Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #6 on: December 09, 2005, 06:04:34 PM »
It is a tough concept for most people to grasp, but cutting taxes often leads to increased tax revenue.  It's basic economics.  Additionally, this current tax cut only reduces taxes that should be completely eliminated (IMHO).  The double taxation that occurs on dividends and other capital gains is unfair.

Hogwash! "cutting taxes often leads to increased tax revenue"? That's the talking point.  Show us these OFTEN instances where it has led to increased tax revenue.  It's nice in theory but people forget to mention the other theories that counter this argument like people hoarding the extra money since they expect taxes will have to increase in the future (and therefore no extra economic value is generated).  People always use Reagan as an example of when this worked (well folks at the Fox network do, but sadly forget to adjust for inflation)...hilarious.  Anyhow, gives us instances of how this OFTEN works?

You'll have a hard time doing this because...........

THERE ARE NONE!

_BP_

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Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #7 on: December 09, 2005, 06:12:04 PM »
Myth: Tax cuts increase tax collections.

Fact: Tax cuts decrease tax collections.



Summary

There is no evidence whatsoever that tax cuts increase tax collections. Almost always, tax cuts have seen tax collections fall in the following years; tax hikes have seen tax collections rise in the following years. Which is about what you would expect!



Tax cuts in recent history

Since World War II, federal tax receipts have fluctuated within a few points of 18 percent of the Gross Domestic Product. Because they have been so stable, tax collections have regularly grown with the economy. Almost always, the only drops in tax collections have been during recession years; otherwise, tax collections have expanded in the years that the rest of the economy expanded.

There are a few notable exceptions to the above rule: those periods following large tax cuts. After Reagan's income tax cuts took effect in 1982, real income tax collections took a long fall, despite the fact our economy continued to grow. For the moment, let's ignore the fact that tax collections could have been expected to grow after 1981. Let's simply use 1981 as a baseline, multiplying it 8 times, and compare that to what was really collected over the next 8 years.


Year      Current    Constant (87 dollars)
-------------------------------------------
1981     $61,137     $78,623

1982      49,207     58,991
1983      37,022     42,544
1984      56,893     62,623
1985      61,331     65,024
1986      63,143     65,015
1987      83,926     83,926
1988      94,508     91,224
1989     103,291     98,092
------------------------------
82-89 total:        567,439
1981 (times 8     -628,984
------------------------------
Net 8-year loss     -69,545


1. Original data from U.S. Office of Management and Budget, Historical Tables, Budget of the U.S. Government, FY 1996. 

twelvehundred

Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #8 on: December 09, 2005, 08:54:12 PM »
...people forget to mention the other theories that counter this argument like people hoarding the extra money since they expect taxes will have to increase in the future ...

Does "hoarding the extra money" mean stuffing under the mattress?  No.  It means saving it and saving is investment.  Business uses this to expand production and improve their economic output.

_BP_

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Re: Hey, let's reduce the deficit by giving away TAX CUTS!!!
« Reply #9 on: December 09, 2005, 10:12:31 PM »
...people forget to mention the other theories that counter this argument like people hoarding the extra money since they expect taxes will have to increase in the future ...

Does "hoarding the extra money" mean stuffing under the mattress?  No.  It means saving it and saving is investment.  Business uses this to expand production and improve their economic output.

It is a tough concept for most people to grasp, but cutting taxes often leads to increased tax revenue.


I figured you wouldn't be able to back this up....Did you just copy and paste a transcript from Fox Faux radio?  ;D