Re: Rose Kennedy Greenway
I'm going to be off-topic for just this post because I just can't stand uninformed posts like this.
You know why there's a class warfare tax? Because everybody is calling for a tax cut. Do you know what this does to the Governments revenue? It decreases it..... Do you know why the president's calling for tax increase for the rich? Because the rest of you are not willing to do your share.
Take a look at some of the European nations' infrastructure and education. Do you know why they are superior compared to the US? It's because about 25% of their money they make are taxed. The US is more at 15%. The US's tax rate is already really low.
You know what's scary? The people calling for tax cuts that will continue to strain the US's budget. You want to cut the deficit? You want them to borrow less? You want to increase the standard of living here? Then increase taxes to all.
Go take a look at this and educate yourself.
http://en.wikipedia.org/wiki/Starve_the_beast
Kent...
I suggest you acquaint yourself with the facts before you stand on the proverbial soap box and vituperate about tax cuts
First both US Federal, and total (Fed, State and local) expenditures as a fraction of Net National Income (or GDP if you are careful as GDP includes government) are at all time highs, as of course is the size of the deficit (excepting WWII period) and in nominal $ the total debt and debt as percentage of NNI or GDP.
There is just no more that can be squeezed out of the economy -- if you increase the tax burden or the equivalent means of siphoning assets from the private sector (e.g. borrowing, or inflating the currency) you will just depress the economy causing tax revenues to fall further.
On the other hand if you cut the marginal tax rates and cut spending to get closer to a balanced budget -- you will spur the economy and seemingly paradoxically you will actually increase the tax revenues -- and eventually you might even be able to get back to the current total of spending -- but at a much smaller fraction of a much bigger economy
Take a look at the effects of the 1981 tax cut which slashed marginal rates and doubled the tax revenues and despite the failure of Congress to make the promised cuts in spending -- ERTA (i.e. the Kemp-Roth tax Cuts) initiated the greatest gain in employment and longest lasting expansion in US history.
This same prescription can be as effective today as it was after the wasted decade of the 1970's culminating in the "Carter disaster," despite the greater impact today of the Obama administration's oppressive regulation of the private sector.
from the wikipedia article -- The Economic Recovery Tax Act of 1981 (Pub. L. No. 97-34), also known as the ERTA or "Kemp-Roth Tax Cut," was a federal law enacted in the United States in 1981. It was an Act "to amend the Internal Revenue Code of 1954 to encourage economic growth through reductions in individual income tax rates, the expensing of depreciable property, incentives for small businesses, and incentives for savings, and for other purposes".[1] Included in the act was an across-the-board decrease in the marginal income tax rates in the U.S. by 23% over three years, with the top rate falling from 70% to 50% and the bottom rate dropping from 14% to 11%. This act slashed estate taxes and trimmed taxes paid by business corporations by $150 billion over a five year period. Additionally the tax rates were indexed for inflation, though the indexing was delayed until 1985.
The Act's sponsors, Representative Jack Kemp of New York and Senator William V. Roth, Jr. of Delaware, had hoped for more significant tax cuts, but settled on this bill after a great debate in Congress. It passed Congress on August 4, 1981 and was signed into law on August 13, 1981 by President Ronald Reagan at Rancho del Cielo, his California ranch.
[edit]Summary of provisions
The Office of Tax Analysis of the United States Department of the Treasury summarized the tax changes as follows[2]:
phased-in 23% cut in individual tax rates over 3 years; top rate dropped from 70% to 50%
accelerated depreciation deductions; replaced depreciation system with ACRS
indexed individual income tax parameters (beginning in 1985)
created 10% exclusion on income for two-earner married couples ($3,000 cap)
phased-in increase in estate tax exemption from $175,625 to $600,000 in 1987
reduced Windfall Profit taxes
allowed all working taxpayers to establish IRAs
expanded provisions for employee stock ownership plans (ESOPs)
replaced $200 interest exclusion with 15% net interest exclusion ($900 cap) (begin in 1985)