Reaganomics is Dead?

[Pexster]

An interesting read.

Quote:

The longer-term problem is the aging of society and uncontrolled entitlements. When everyone realizes we have to tighten spending, it will be impossible to do because there will be so many old people, and they vote.

That leaves us one alternative: raising taxes. Conservatives view all tax increases as equally bad -- they'd rather default on the debt than raise taxes. But there are better and worse ways of raising taxes.

. . . .

The mistake of the left is to assume you can raise rates on the rich and they won't react. They'll put more effort into tax avoidance and evasion. That won't do anyone any good except tax lawyers. But not raising taxes at some point isn't an option. If Republicans refuse to put anything on the table, Democrats will raise taxes in a way that suits them.

[Chuckiechan]

Given the high unemployment and moribund economy, I'd have to say it is. Until 20% of the people start wondering if they will ever work again.

And that question is a definite maybe.

[pickel]

Quote:

Originally Posted by Chuckiechan

Given the high unemployment and moribund economy, I'd have to say it is. Until 20% of the people start wondering if they will ever work again.

And that question is a definite maybe.

From the way i see things here in Mississippi, JOBS ARE D E A D Period. We're losing industry every week and the unemployment is exponential. I went down to the Employment Security Commission, and with my varied work experience, I could , with reasonable expectation, have had a few jobs, not in my vocation, but working with computers or wiring machines, w/ some expectance of a living wage. However, there many there who, either had not much work experience or the work experience they had was not in demand and probably would never be again. Times are TOUGH and it seems the media and Washington are candy coating the econony and jobs situations with complete Bullshit. The State of Mississippi budget is down the tubes. Who knows what taxes are around the corner. I've started a "Slush fund" anticipating what my property and income tax will be at the turn of the year. If had to pay for auto repairs and house fixin's alone , we'd be the hole, more like a crater. Luckily, I have little trust in the mechanics and contractors( Having worked around some real sleeze bags. ) I feel badly for those who have to use these predators

[Toadman]

Pex understands.

Quote:

The mistake of the left is to assume you can raise rates on the rich and they won't react. They'll put more effort into tax avoidance and evasion. That won't do anyone any good except tax lawyers. But not raising taxes at some point isn't an option. If Republicans refuse to put anything on the table, Democrats will raise taxes in a way that suits them.

It's not "evasion" in almost all cases, as there's much to lose + prosecution.
You simply can't tax a society into prosperity. Capitalists(not necessarily Repubs either) will simply take their business elsewhere where incentives promote growth. Same as the local coupon-clipping populace. States with favorable tax rates woo businesses and create jobs. But that sound you hear is the creaking overseas investment opportunity gate being closed, legal or not.

[The Real Bingo]

Quote:

Originally Posted by Toadman

Pex understands. It's not "evasion" in almost all cases, as there's much to lose + prosecution.
You simply can't tax a society into prosperity. Capitalists(not necessarily Repubs either) will simply take their business elsewhere where incentives promote growth. Same as the local coupon-clipping populace. States with favorable tax rates woo businesses and create jobs. But that sound you hear is the creaking overseas investment opportunity gate being closed, legal or not.

You (not you personally; you're far too intelligent) wonder why some states are tanking (California, Michigan, New York, New Jersey, etc.) while others are flourishing, even in such 'bad' times. Why should some states have lower-than-national unemployment rates? Gee...that's a stumper. I guess the taxes are just too low to be sustainable in those aforementioned states...

[pickel]

Quote:

Originally Posted by The Real Bingo

You (not you personally; you're far too intelligent) wonder why some states are tanking (California, Michigan, New York, New Jersey, etc.) while others are flourishing, even in such 'bad' times. Why should some states have lower-than-national unemployment rates? Gee...that's a stumper. I guess the taxes are just too low to be sustainable in those aforementioned states...

The people (Who Can ) are getting thier ass out of states that are hurting and are starting the "Blood Sucking" of higher taxes and less services. There are many who can find jobs in properous states, thus giving them a stable living and increasing the coffers of such states. While the ones who can't are drawing heavily on the resources of the other states, putting more stress on their limited finances . A vicious circle that will only get worse as the economy tanks further. Hard times have just begun. Wait til the "Health Care" fiasco hits the bricks. Those who can't get health care and KNOW it's just a matter of time til they're DEAD won't give a shit and there will anarchy in the streets . Hide and Watch.

[MegalosSkylaki]

The Grey Panthers will arise asa ging baby boomers get fed up bya stock market meltdown, rising taxes and inflation, and a medicaire/Social Security crisis.

GooD thing I stil have Purple fur.

DOOOOG

[tony_j15]

very good read. thanks for the link, Pexster.

[Chuckiechan]

Part of the reason taxes always need to be raises it the wasteful spending.

Case in point: California. Most of the "savings" in Obamacare are costs that will be shifted to the states - reinstatement of the "Advantage" program, fees to hospitals and doctors, etc.

Bad enough. But we insist on having a huge welfare case load of able bodied workers, yet allow illegals to come in and take those jobs.

How is the relevant to Pexter's post? We don't gain tax revenue when an illegal takes a job a citizen on welfare could do. If unemployment, including welfare case loads were at 2%, all of those people would be paying instead of consuming eliminating much of the need for tax increases.

This is the part of economics 1A that gets left ignored.

[Pexster]

This entirely depends on whether the job is above the table or below, and that question has nothing to do with immigration status. In fact, if someone takes an above-the-table job using someone else's SSN, the resulting FICA and federal and state income tax withholdings do increase tax revenues. Also, this person will never be filing for a refund.