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dippin · 01-11-2010, 11:23 AM

Quote:

Originally Posted by pan6467

Again, I disagree. By raising employment and wages, we'll see serious growth. You can't ignore the debt we now have but if you rebuild the tax base, restructure programs to be streamlined, effective and cut pork and foreign aid, we may get a better handle on it.

If we rebuild and increase factories by 50%, that's a 50% increase in taxes, without raising the rate. Those factories will need supplies thus, more businesses will pop up around them, thus more tax money is raised, not just nationally, but state and local.

As more jobs are created, the market becomes a worker's market meaning wages go up. Thus, people have more to spend, more to save. That means we see taxes rise in sales, parents are more able to help their kids pay for college, IRA's and other retirement funds can be afforded and government's burden decreases. With that we see, tax rates not increased and government not having to spend as much money on those programs.

Same goes for rebuilding the infrastructure. Jobs are created, wages are pushed higher, more small businesses grow, more real estate is sold, etc. thus in those areas where there will be rebuilding we'll see a tax base build to where it could feasibly pay for the work being done. Again, not a SINGLE tax rate has to go up.

Once you get an increasing tax base, streamline programs to control spending, you should see growth in income for the government and they will not have to work on deficits and may be able to start paying the debt down.

With the boomers aging, we are going to see the tax base continue to decrease and thus the rates are going to have to increase. In doing so more manufacturing, more labor will be moved overseas. The market becomes employer driven meaning wages are kept lower, which depletes the tax base even more, which is going to have to increase the rates, which means more businesses go overseas.... etc etc etc.

The only way to stop the bleeding is to rebuild a tax base as stated above. If we do not rebuild a tax base soon, the spiraling will get totally out of control.

THERE IS NO OTHER WAY, EXCEPT THE TOTAL BANKRUPTCY AND DISSOLUTION OF GOVERNMENT.

You are still not getting it. Unemployment rate is 10%. Unless you employ every one of those in a job that pays over half a million at least, that is not enough to make up the difference.

And if you increase income through some other magical way, guess what: that is the nature of entitlements, they go up with income as well. You increase income through some magic policy, pensions go up, military salaries have to go up to keep up, doctor compensation has to go up.

And that is all not considering the fact that social security and medicare costs will go up significantly over the next two decades.

So it is not a matter of opinion, it is a mathematical fact that you cannot keep those programs as they are without tax increases.