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Does anyone on this forum disagree that a government, any government whether a homeowner's association or our federal government, requires a certain amount of money to operate? Assuming a government needs so much cash to operate, what matters is the mechanism of collection or the form of taxation. Lets say the example government needs one million dollars to meet its budgeted expenses. Where does said government get its cash?
What those of you who think the Obama tax cut is for you, think about this. Assuming the 2010 Fiscal year budget is a perfect match of the 2008 as far as income and expense. Mr. O just cut your tax by 10%. So where does he get the 10% back?
Let's see, he can raise taxes on the 5% that if added to the 95% would make 100% of all Americans. So, how much does he raise them on the 5%? What do you feel is fair? So, lets say we take an amount that leaves the 5% with only $ 250,000. Yes, lets say that, even if their investments in the business that pays your salary, made them $100,000,000, can you say Buffett or Gates? So, Mr. Buffet and Mr Gates now can only make $250,000. Is this what you want?
The other way is to raise taxes on businesses such as Exxon, Wal-mart, or Joe's Plumbing. Where will Exxon, Wal-mart, and Joe's get the money to pay for these taxes? Oh, let's see, how about their customers. Can anybody say reduced profits? With 85% of all businesses failing within the first five years of existence, why risk the venture if profits are limited? Then the other choice is raising prices. What is the difference in a tax driven price increase and a tax hike?
Ask any economist, taxing a business never serves a purpose other than to drive businesses out of business or increase the cost of production.
What those of you who think the Obama tax cut is for you, think about this. Assuming the 2010 Fiscal year budget is a perfect match of the 2008 as far as income and expense. Mr. O just cut your tax by 10%. So where does he get the 10% back?
Let's see, he can raise taxes on the 5% that if added to the 95% would make 100% of all Americans. So, how much does he raise them on the 5%? What do you feel is fair? So, lets say we take an amount that leaves the 5% with only $ 250,000. Yes, lets say that, even if their investments in the business that pays your salary, made them $100,000,000, can you say Buffett or Gates? So, Mr. Buffet and Mr Gates now can only make $250,000. Is this what you want?
In 2005, the top 5% paid $549,667 million in federal income taxes. The bottom 95% paid $384,857 million. To accomplish a 10% tax cut for the bottom 95%, we would need to move $38,486 million from them to the top 5%, meaning that the latter would have to pay $588,153 million. This would mean that their average tax rate would rise to 20.5 cents per dollar, rather than 19.2 cents per dollar. Buffet, Gates, and everyone else in the top 5% would still keep 79.5 cents out of every dollar they can make. If they can learn to get by with that instead of 80.8 cents, the entire rest of the country can have a 10% tax cut and the Treasury still breaks even. If they could somehow scrape by while keeping just 78.2 cents out of every dollar that they make, the rest of the country could have a 20% tax cut and the Treasury would still break even...
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
