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Hahaha. No, taxes are what we pay to run the government, pay air traffic controllers; meat inspectors; FBI agents; disaster relied and social programs.
This lunatic meme that taxes are evil has gotten out of control.
Where's the inflation that the right-wing has been predicting for three years?
People with this view don't even realize how falsely bankrupt their argument is.
Businesses don't hire people because they got a tax break and don't fire people when their taxes go up. They hire as many as they need, when they need them, to earn more money. If the rich were indeed the job creators, they should be fired because they're not doing their jobs -- even though tax-rates are the lowest in generations.
Rich people hire maids and servants with their cash. However, if you gave me money, I may have my bathroom remodeled creating employment too. In that sense, rich people are no different than anyone else. The only difference is that when the government needs money, it has a choice. They can tax the many who were economically treading water for 30 years or they can tax the wealthy who have had their incomes rise many times in the same period.
This is a classic misunderstanding of how taxes function in a modern monetary fiat system.
The currency unit created by the state via deficit spending can only be extinguished by payment of taxes. Therefore, a modern monetary system can best be thought of as a system of debits and credits where government deficit spending credits the private sector and payment of taxes debits the private sector.
Taxing is a monetary control to remove currency from the system by a specified amount. Taxes do not really pay for anything, taxes unprint money the Government has introduced into the system.
Taxing is a form of inflation and hyper-inflationary control. If the Government needs money someone walks over to a computer and presses a couple of buttons. The Government funds the private sector’s ability to pay their taxes by spending money into existence.
This is why “Spending cuts are the same thing as a tax increase.”
1. Actually more than 50% of the cost to his jobs plan is tax cuts for small businesses and the average employee, which would be paid for by allowing the Bush Tax Cuts on the wealthy expire.
2. You can't cut us into prosperity. Countries such as Canada and Australia are doing 1000x better than the United States and both have much higher taxes on the wealthy.
3. If you are serious about cutting our deficit, you can't just cut your way out of it. You have to cut spending and increase revenue. We spent a decade fighting two wars during a time when taxes were cut, the first time in our country's history.
SO TRUE!!! I wish more people saw reason like this.
That's mere baloney. This particular tax break, known as the carried-interest loophole, allows hedge fund managers to treat the money they receive from investors as capital gains, subject to a 15 percent tax rate. Though this money is a paycheck received for services, just like a movie star receiving a bonus if her movie does well, it’s treated as investment income.
Riddle me this-
If I currently make $1.2 million per year, and there is an 80% tax on anything over a million (with state taxes that makes a 90% tax rate), why in the world would I actually work for that extra $200K if it is all taxed away?
Obviously, anyone who is taxed to that degree on income over $1 million will just take more time off, as they would otherwise be working for free. There would be absolutely no point in it. Now how does this help-
1. government revenue?
2. the productivity and economy of the US?
Want more federal cash? The best way would probably be a VAT tax. The trick would be making it such that it would not discourage consumer spending. The problem is that the feds have never "saved" or "paid down the debt" with additional revenue. What would they do with increased revenue? Blow it as they always have in the past.
The feds are fiscal crack addicts who need formal limits on their spending (a balanced budget amendment), as they obviously cannot control themselves.
This is a classic misunderstanding of how taxes function in a modern monetary fiat system.
The currency unit created by the state via deficit spending can only be extinguished by payment of taxes. Therefore, a modern monetary system can best be thought of as a system of debits and credits where government deficit spending credits the private sector and payment of taxes debits the private sector.
Taxing is a monetary control to remove currency from the system by a specified amount. Taxes do not really pay for anything, taxes unprint money the Government has introduced into the system.
Taxing is a form of inflation and hyper-inflationary control. If the Government needs money someone walks over to a computer and presses a couple of buttons. The Government funds the private sector’s ability to pay their taxes by spending money into existence.
This is why “Spending cuts are the same thing as a tax increase.”
Good grief. Is that what your economics class(es) taught you? If so, then we need to abolish those classes and their teachers/professors from the school system! No wonder people cannot understand how to use credit without going bankrupt and the politicians haven't a clue, especially BO and his idiot advisers and appointees; i.e., for instance the tax cheat and Fed. Chair! Wow! This is the kind of thinking that is putting this country in serious jeopardy of becoming bankrupt.
Good grief. Is that what your economics class(es) taught you? If so, then we need to abolish those classes and their teachers/professors from the school system! No wonder people cannot understand how to use credit without going bankrupt and the politicians haven't a clue, especially BO and his idiot advisers and appointees; i.e., for instance the tax cheat and Fed. Chair! Wow! This is the kind of thinking that is putting this country in serious jeopardy of becoming bankrupt.
This is how The Modern Monetary System works. I agree, most economics classes need to be retooled, your line of thinking clearly establishes this.
Quote:
Learning MMT can take some significant time as it turns most of modern economics on its head, but understanding MMT is vital in comprehending how the modern monetary system works and is particularly important at this juncture as many of its most controversial elements have been proven correct during the economic crisis of 2008.
MMTers have experienced remarkable success predicting much of the economic outcomes over the last 20 years. This is not surprising as MMTers tend to view other economists as seeing the world through a largely defunct prism – a prism based on a gold standard world that became inapplicable in 1971, but whose thinking continues to poison the economic thinking to this day.
If "taxes unprint money" then why don't I just rip up a few $50 bills, toss in the trash and call it good and not pay any taxes ?
Currency issuance through government disbursement is used to increase non-government net financial assets, and taxation withdraws net financial assets from non-government.
Critical to the soundness of the financial system above all else is the protection of the currency of the State, which is why the Secret Service was created. Faith in the economy and trade of a Sovereign lies with the perceived value of it's currency, which is vested in the people's willingness to use it in trade and in elimination of their tax burden to the State.
This is how The Modern Monetary System works. I agree, most economics classes need to be retooled, your line of thinking clearly establishes this.
It is obvious to me that "The Modern Monetary System" DOESN'T work!
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I wish more people saw reason like this.
