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Originally Posted by aceventura3
You guys talk about tax cuts, but not government spending. You talk about the rich benefiting from tax cuts, but you don't explain how government taking from one person and giving to another creates wealth for poor people. I give clear example how people investing does create wealth. Productivity gains is the long-term solution to maintaining and improving quality of life (as has been true since the dawn of time). Government spending is a drain on productivity, not a help. Money in the hand of people willing to invest in the future helps everyone. If you can show I am wrong I will eat my words and apologize for being an arrogant SOB.
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I personally don't care how the USA gets its financial house in order, the only thing is, you'd better do it soon cause the chickens are coming home to roost.
When Bushie took over the US debt was 4.9 trillion dollars. Now, 6 years later, your debt is 8.2 billion dollars. It doesn't take a mezmo to figure out that that is an unsustainable path.
The first step in controlling the DEBT will be to balance the US federal budget, stop borrowing money to finance day to day operations. You can do it one of three ways.
1. Cut Spending across the board by 25%, in all departments, including the precious defence budget.
2. Increase taxes.
3. A combination of both.
To me, Number 3 seems the most logical, so like it or not, some form of tax increase has to be in the cards.
The most logical is a national sales tax. Canada has a 7% G.S.T. (Goods and Services Tax) on just about EVERYTHING you buy, except some groceries. It works. It's hated, but it works. Why? Cause it's hard to beat. Lots of rich dudes beat the income tax and pay nothing. Lots of poor people pay nothing. But the GST is almost as hard to beat as is property tax. The more you buy, the more you pay. All other G-7 nations have something similar.
Only the US does not.
Americans think that they are over taxed, but they are not. The truth of the matter is that you pay less tax than any G-8 nation.
You think that this allows you more money to consume or save with. Ironically, due to your debt, when the bubble does pop, your money is going to suffer and you will actually have less.
You can't keep paying more and more money in just interest every year. It just doesn't work that way.