If we raise taxes ( Reduce disposible income) and cut government spending ( Currently 47% of our GNP)?
How will this lead to an increase in economic output?
How will this lead to an increase in economic output?
Patiente
The appropriate raising of taxes could have positive effects on economic output. Right now a huge amount of our taxes go to paying the interest on the national debt. If we raised taxes on the rich we could actually reverse the trend. The old lie that if we tax the rich they won't be able to invest and create new jobs has been shown to be a lie. To underscore this look at average income of Americans and unemployment rates since the huge tax cuts for the rich from Reagan, then Bush , then Clinton, then Bush. They all cut taxes on the rich which has not led to more or better jobs for Americans. We need to return to the tax rate of the late 60's which took most of the income of the rich( which still left them rich, but kept them from becoming filthy rich). If we reduce the burden of the debt we would be able to keep more of our tax money to create new jobs in the green sector to head off Climate change. Like the "new deal" taxing the rich( essentially raising taxes) and spending that on programs to stop climate change, we solve three problems at once and climate change being a crucial one, after all, it is already too late to prevent climate change but we can keep it to a manageable level if we put a huge effort into it.
Dogbreath
Raising taxes won't. Nobody is going to know what is going to happen with this economy until the election in 2012 when the GOP, it is hoped, finishes off the Democrats in Congress and regains the White House with an incumbent worth supporting (Someone other than Romney). Then with the government boot off the neck of the private sector maybe some capitalism might happen.
rigterink
I consider the polls. the only problem is while the few do no longer in basic terms like the voters judgements they arrive across a large liberal decide and report a greater healthful in hopes of having the voters overturned. the rationalization this does not artwork on a countrywide foundation is the only way for substitute at that time is a Constitutional modification. administration of the money potential a large style of means in Congress. in basic terms some might vote to cut back their means. additionally, the guy States are used to getting large sums of money from the Feds and could choose for to no longer bypass a Constitutional modification which will mean the money will now no longer come from the Feds. Getting 38 States to approve the modification would be very difficult. The above motives does no longer mean we the human beings shouldn't do each thing we can to tension Congress to do this.
Zachary G
Let's cut that 47% down to 20% or 15% and have a flat income tax rate of 12%
Greg
Increased economic output??
Who said it would??
What it WILL DO... is balance the Federal Budget.
There are currently approximately $4 Trillion in unproductive, uninvested funds within the United States.... is that what YOU call disposable income?? How is THAT helping boost economic output??
Oh.... it isn't??? That's right..... EXACTLY.