Make a case for the Estate Tax

[spaceboy761]

If I'm reading this right, he calls for the complete overhaul of Medicare. I like that part of it, but good luck ever getting that bill out of a 70% committee vote.

Other than that, he swaps out the tax income from progressive taxes on the rich for a 8.5% VAT. Again, good luck telling the American public that 95% of them have to take a 8.5% pay cut (effectively) to support huge tax relief for the rich. And that's assuming that you buy into supply-side economic ethos, which I personally never did because if you buy into trickle-down, you basically give up on the idea that small businesses drive the economy. It's all a matter of opinion, but I would have the government at least try to steer the economy in a cohesive direction instead of just throwing money at plutocrats and saying, "Have fun, guys!". The 'free market' is a lot less elegant that people realize.

[bluffmanxx]

actually there is no VAT for consumers, although some businesses may have to raise prices to cover the added cost. it's a business consumption tax that replaces the current corporate tax structure. it would seem to suck for me since alcohol has a huge markup and i'd be paying taxes on that instead of paying taxes on a small profit.

* Provides individual income tax payers a choice of how to pay their taxes – through existing law, or through a highly simplified code that fits on a postcard with just two rates and virtually no special tax deductions, credits, or exclusions (except the health care tax credit).
* Simplifies tax rates to 10 percent on income up to $100,000 for joint filers, and $50,000 for single filers; and 25 percent on taxable income above these amounts. Also includes a generous standard deduction and personal exemption (totaling $39,000 for a family of four).
* Eliminates the alternative minimum tax [AMT].
* Promotes saving by eliminating taxes on interest, capital gains, and dividends; also eliminates the death tax.
* Replaces the corporate income tax – currently the second highest in the industrialized world – with a border-adjustable business consumption tax of 8.5 percent. This new rate is roughly half that of the rest of the industrialized world.

[spaceboy761]

So how exactly would the budget balance? These changes are all huge cuts expect for the VAT, which won't make up the difference by itself. Anyway, my point was that the whole Tea Party idea of balancing the budget through cutting government spending is impossible unless they attack the entitlement systems that they as of yet have shown no desire to attack. Crowing about 'political pork' wouldn't even put a dent in it.

I believe that tax rates are nominal anyway so having a huge tax increase wouldn't effect the purchasing power of the dollar for domestic goods and services. First off, our economy is about 70% service-based anyway, so that part is safe. The only important items that would get more expensive (Porsches are not important) are oil and basic materials made overseas. Our export economy would get killed, but it sucks now anyway.

[bluffmanxx]

i'm sure you don't have endless time to read everything in the roadmap greg, but this cut and paste both answers your concerns about levels of revenue and illustrates why i support this plan or something similar. btw, there are also statements regarding exports & the service industry if you search around a bit.

Tax Policy Center's Roadmap Revenue Analysis

The Tax Policy Center has completed a 10-year revenue estimate of “A Roadmap for America’s Future” that suggests that the tax reforms would raise slightly less revenue than claimed. With respect to TPC’s analysis, Congressman Paul Ryan issued the following statement:

“I appreciate the Tax Policy Center’s effort to advance the debate on our need to get a grip on the explosion of spending and put the government on a sustainable path. Our nation’s fiscal crisis is the result of Washington’s unsustainable spending trajectory, not from a lack of sufficient revenue.

“The tax reforms proposed and the rates specified were designed to maintain approximately our historic levels of revenue as a share of GDP, based on consultation with the Treasury Department and tax experts. If needed, adjustments can be easily made to the specified rates to hit the revenue targets and maximize economic growth. While minor tweaks can be made, it is clear that we simply cannot chase our unsustainable growth in spending with ever-higher levels of taxes. The purpose of the Roadmap is to get spending in line with revenue – not the other way around.

“I look forward to continuing the dialogue with the Tax Policy Center and working with my colleagues in Congress to advance real solutions to our fiscal crisis.”

[NoAngel2u]

How's the solution any different than it would be for a family in a financial bind. You EITHER get extra work/income, to keep your current standard of indebtedness and faux luxury, OR Cut up the credit cards, close out the OD protected bank accounts and lines of credit, operate on LESS THAN incoming and CASH ON HAND ONLY, cut out ALL the extra unnecessary anythings and BUDGET the necessaries within means,,, oh, and get some candles, turn off the tv, fix the bikes, plant a garden, get some chickens and a couple goats and before you know it, things get better. EVEN BETTER is to generate some extra income WHILE you are living more frugally.

I just don't see what the hell there is to argue and debate about. Sick-o-the-shit lol They act like a bunch of children arguing over toys. I'm bout ready to fire the lot of em. Seriously feel a nuclear reaction coming on, because I know damn well that we all know damn well what to do, and THEY AREN'T GOING TO FUCKING DO IT. You know I'm right. This is gonna be the same shit in 2 years, 4 years blah blah infinitum. Their childish chickenshit asses are not going to fix anything. ANYONE with a decent idea is going to get shot down by the majority and their strokers and blowers.

Bah, I feel scrooged!

[bluffmanxx]

your anger and frustration is what elected obama AND what fueled the red wave in november. people are tired of the status quo, and elected obama because he promised something different, then turned against him when he showed he was not able to achieve the types of change people wanted. in fact he spent more, not less. couldn't let a crisis go to waste...lol...good advice rahm!!

so long as the economy grows, even if modestly, harsh cuts are not necessary. most cuts and modest revenue gains will, in time, fix the debt problem. as i said earlier, either large cuts in spending or large tax increases will have severe negative impacts on the economy that would leave us in worse shape than where we are now. will there be the long term will to hold the line?? sadly, i doubt it. too many people think there is an endless stream of government money that appears magically.