Speak Out: Raise Taxes? Unnecessary And Illogical.

Replies (8)

• Mic,

  I would have no aversion to federal stimulus spending during an economic recession if that government ran a balanced budget or a surplus during good economic times. This is what John Maynard Keynes suggested in his General Theory of Employment, Interest, and Money. By producing and banking a 'rainy day' fund, the government would have funds on hand to fill in the gaps when the private economy went into recession.

  We say we are operating our economy according to Keynesian theory but it is a bastardized version in which we refuse to operate within a budget and run surpluses in good economic times. We are not far from paying out $1 trillion annually servicing the national debt. We have held interest rates artificially low for a long period of time for political purposes. (Artificially low interest rates were a large part of the cause of the last recession)

  Those low rates are unsustainable. Normal interest rates and the huge increase in federal debt will at some point impose a tremendous burden on our economy. We are now spending $661 million dollars DAILY on interest payments. That money does not provide any services for taxpayers or other citizens.

  Today, the interest rate we pay on our national debt is at an all-time low and expected to rise. Interest on our debt today is roughly equivalent to what we spend on Medicaid and is projected to exceed government discretionary spending in 2004. I think that is a problem! Do you?

  http://timiacono.com/index.php/2011/02/17/servicing-the-national-debt/

  -- Posted by Robert* on Sat, Oct 5, 2013, at 7:42 AM

• Tax cuts passed. Government tax revenue increased to record levels. Bottom line, deficits and debt are 100% a spending problem.

  -- Posted by FreedomFadingFast on Sat, Oct 5, 2013, at 10:20 AM

• Government tax revenue is at record levels. Fact.

  Spending is 100% of the problem. Raising txes on anyone is nothing more than government greed.

  -- Posted by FreedomFadingFast on Sat, Oct 5, 2013, at 5:10 PM

• The best way I know of to increase tax revenue is to grow the economy. But we would have to change the basic philosophy of this administration to accomplish that.

  -- Posted by Robert* on Sat, Oct 5, 2013, at 10:51 PM

• Reduce by one penny per each $100 spent by this government and see how much that adds up to.

  Then talk about how spending cuts will never help.

  Explore a little Hamilton vs Jefferson thinking with a bit of Grover and Calvin thrown in. Imagine the possibilities. :)

  -- Posted by Old John on Sat, Oct 5, 2013, at 11:24 PM

• If all we did was freeze government spending at the present level, inflation and growth of the economy would eventually balance our budget.

  -- Posted by Robert* on Sat, Oct 5, 2013, at 11:30 PM

• Robert, Good to know someone understands where I was going with my limited understanding of it all.

  Afterall, Hillbilly Economics was hard for me, being dang near a flat-lander you see. :)

  -- Posted by Old John on Sun, Oct 6, 2013, at 12:25 AM

• OJ,

  It is a simple task to accomplish; if our politicians really wanted to do it.

  But money equals power. The more money flows through Washington, the more power politicians in Washington have over the people. And they don't care if it is real money (cash on hand) or imaginary money (created by printing press)

  -- Posted by Robert* on Sun, Oct 6, 2013, at 10:10 PM