What is optimum tax rate?

[SassyLady]

How many of you have heard of the Laffer Curve?

In theory, if everyone paid 11% (mentioned on a Glen Beck segment tonight) across the board (including businesses) we would be able to collect more revenue than if we have a tax rate of 70%. These videos on the Laffer Curve explain why it works (more people are willing to report revenue when tax rates are reasonable).

Videos from the Center for Freedom and Prosperity
(if you can get past the hokey music the information presented is mind boggling)


Part I
<object style="height: 344px; width: 425px"><param name="movie" value="http://www.youtube.com/v/fIqyCpCPrvU"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="http://www.youtube.com/v/fIqyCpCPrvU" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="425" height="344"></object>

Part II

<object style="height: 344px; width: 425px"><param name="movie" value="http://www.youtube.com/v/YsB_rnzBA08"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="http://www.youtube.com/v/YsB_rnzBA08" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="425" height="344"></object>

Part III

<object style="height: 344px; width: 425px"><param name="movie" value="http://www.youtube.com/v/Mw7LtVwDCbs"><param name="allowFullScreen" value="true"><param name="allowScriptAccess" value="always"><embed src="http://www.youtube.com/v/Mw7LtVwDCbs" type="application/x-shockwave-flash" allowfullscreen="true" allowScriptAccess="always" width="425" height="344"></object>

[KarlMarx]

Tax *rate* cuts are just what this economy needs.

Tax rate cuts are just like a sale at your local department store. They stimulate spending and perk up the economy.

The reason that politicians don't like them is that they think that tax rate cuts choke off "their" money supply.

Which brings up my point.... the *real* problem is spending. Politicians are like kids on a spending spree. They are looking for more and more sources of income so that they can spend our money on their latest program. They keep hammering us with the line that it's up to us to pay our of "fair share" of taxes ... which is getting bigger all of the time.

Currently, the federal budget is comprised of the following:

Social Security
Defense
Medicare
Medicaid
Interest on the Debt
Everything else

Social Security, Medicare, and Medicaid make up about 1.5 Trillion dollars of the federal budget

Defense is about 600 Billion dollars

Interest on the Debt is about 250 Billion dollars

The Federal budget is between 3 and 3.5 Trillion dollars.

You can see that something must be done about Social Security and Medicare. Defense is already under a lot of scrutiny.

Something also must be done about spending. I favor an amendment to the Constitution that requires a balanced budget except in cases of national emergency. I also think a line item veto may be a good thing to have.

[LiberalNation]

taxes to defeat the axis

http://www.youtube.com/watch?v=rQsOOfU59SM

<object width="640" height="385"><param name="movie" value="http://www.youtube.com/v/rQsOOfU59SM&hl=en_US&fs=1&"></param><param name="allowFullScreen" value="true"></param><param name="allowscriptaccess" value="always"></param><embed src="http://www.youtube.com/v/rQsOOfU59SM&hl=en_US&fs=1&" type="application/x-shockwave-flash" allowscriptaccess="always" allowfullscreen="true" width="640" height="385"></embed></object>

[SassyLady]

Tax *rate* cuts are just what this economy needs.

Tax rate cuts are just like a sale at your local department store. They stimulate spending and perk up the economy.

The reason that politicians don't like them is that they think that tax rate cuts choke off "their" money supply.

Which brings up my point.... the *real* problem is spending. Politicians are like kids on a spending spree. They are looking for more and more sources of income so that they can spend our money on their latest program. They keep hammering us with the line that it's up to us to pay our of "fair share" of taxes ... which is getting bigger all of the time.

Currently, the federal budget is comprised of the following:

Social Security
Defense
Medicare
Medicaid
Interest on the Debt
Everything else

Social Security, Medicare, and Medicaid make up about 1.5 Trillion dollars of the federal budget

Defense is about 600 Billion dollars

Interest on the Debt is about 250 Billion dollars

The Federal budget is between 3 and 3.5 Trillion dollars.

You can see that something must be done about Social Security and Medicare. Defense is already under a lot of scrutiny.

Something also must be done about spending. I favor an amendment to the Constitution that requires a balanced budget except in cases of national emergency. I also think a line item veto may be a good thing to have.

Heard that our interest by 2012 will be 2/3'rds of the GDP.....$800 billion/year....can that be true?

[darin]

Tax reform that makes sense is a pipedream. A flat tax won't happen because there are more stupid, lazy poor than honest, hard-working poor. The stupid lazy poor vote for democrats because "they get free stuff". Democrats - and other liberals - WANT high taxes.

[SassyLady]

Tax reform that makes sense is a pipedream. A flat tax won't happen because there are more stupid, lazy poor than honest, hard-working poor. The stupid lazy poor vote for democrats because "they get free stuff". Democrats - and other liberals - WANT high taxes.

And it's hard to get people to realize that the higher the tax rate the less tax revenue will be brought in ....... in fact it lowers the amount of revenue that will be generated because people will either quit making money or move their money or their businesses.

Higher tax rates de-incentivize people which is Obama and his team's goal. Then they take over your life and turn us all into little government working citizen's working for the collective so we can get our daily ration of bread.

[cat slave]

[QUOTE=dmp;421444]Tax reform that makes sense is a pipedream. A flat tax won't happen because there are more stupid, lazy poor than honest, hard-working poor. The stupid lazy poor vote for democrats because "they get free stuff". Democrats - and other liberals - WANT high taxes.[/QUOTE

Unfortunately for us all, I think you are exactly right!
Think of the jobs government workers would lose when
they make a mint navigating and enforcing our present
punitive and bloated tax system.

Add all those workers who make major $$ & would never
vote for anyone who wanted to simplify and dismantle
the status quo, add the leeches of society living on the
dole, add the elitists, the naive and misguided youth of
the land ie college kids, and the yellow dawg dems and
what we see is what we get only it is getting worse.

A consumption tax would be the best for us all.

[DragonStryk72]

Something also must be done about spending. I favor an amendment to the Constitution that requires a balanced budget except in cases of national emergency. I also think a line item veto may be a good thing to have.

I see your two points, there and raise you a flat tax rate for the clean government win!

[cat slave]

And it's hard to get people to realize that the higher the tax rate the less tax revenue will be brought in ....... in fact it lowers the amount of revenue that will be generated because people will either quit making money or move their money or their businesses.

Higher tax rates de-incentivize people which is Obama and his team's goal. Then they take over your life and turn us all into little government working citizen's working for the collective so we can get our daily ration of bread.


....in our gray communal jackets issued by the big bro,
working our basic 80 hour a week to get our aspirin and
snake oil from the broken down white van with a hammer
and sickle painted over the red cross.

[Little-Acorn]

As long as you keep taxing some people more than the benefits they receive from government, and other people less than what they receive, you will NEVER arrive at a "fair tax solution".

The Framers had the best idea for personal taxes.

[Gadget (fmr Marine)]

Fair Tax is the way to go (http://www.fairtax.org/site/PageServer)

[Mr. P]

Fair Tax is the way to go (http://www.fairtax.org/site/PageServer)

Absolutely!!!

[BoogyMan]

princess, what you have posted here makes WAAAAAY to much sense to appeal to a liberal, and I will tell you why. If this kind of taxation system were to be implemented, the left would lose the ability to scapegoat the "evil rich" and the "gluttonous right" and would be forced to realize that their platforms are little more that reconstituded Marxist tripe.

[SassyLady]

princess, what you have posted here makes WAAAAAY to much sense to appeal to a liberal, and I will tell you why. If this kind of taxation system were to be implemented, the left would lose the ability to scapegoat the "evil rich" and the "gluttonous right" and would be forced to realize that their platforms are little more that reconstituded Marxist tripe.

You are soooooooooooo right!!! :cheers2:

[avatar4321]

Tax rates shouldnt be higher than 10%. That's what God asks for. I dont see why the government should get more than the Creator of the Universe.

[cat slave]

Fair Tax is the way to go (http://www.fairtax.org/site/PageServer)

I disagree. In theory maybe, but given the track record of government and
all the accompanying chaos, I think it would wind up being just what we have.

Flat, consumption tax and 10% is a good number!

If someone makes $1,000 a year, they pay $100. Whats wrong with that.
At the same time someone with a $15 mil income would be paying their (large)
10%. I dont see the problem with that.

[cat slave]

The 1K was just a comparison to higher incomes....anyone that low should
be exempt for the first whatever needed to survive.