The reality is, this debt will probably never be repaid.Quote:
Originally Posted by SGWilko
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The reality is, this debt will probably never be repaid.Quote:
Originally Posted by SGWilko
Well, for starters, raise the effective corporate tax rate. Have companies such as IBM, Chevron, Apple, etc. contribute their share.Quote:
Originally Posted by SGWilko
Just saying...
You mean we're not now??Quote:
Originally Posted by SGWilko
The US corporate rate is already higher than many places in the world. That's one of the reasons so many companies have transferred operations elsewhere. Lower the corporate rate enough to be competitive and close the loopholes and special perks which congress has given to many (campaign contributing) companies over the years. We'd see a net increase in revenue.Quote:
Originally Posted by schmenke
Yes, but tax breaks and shelters lower the effective tax rate to one of the lowest in the western world. Some US companies are paying next to nothing now.Quote:
Originally Posted by Starter
As with any budget, controlling spending and increasing revenue is the answer. Unlike a personal budget, it doesn't matter if the plan takes 100 years as the country won't reach "retirement" age with income ending.Quote:
Originally Posted by SGWilko
The bottom line is we have to control spending more. I can think of many ways to do so beyond the obvious that are often stated. Just closing loopholes in personal and corporate taxes would make a huge difference. There are also massive loopholes in entitlement programs that allow people to legally cheat the system.
As an example of said loopholes I'll give one that applies to my family. Both myself and my wife are eligible for VA health care do to our military service. We are in one of the lesser eligibility categories as we didn't retire from the military or have any major service related injuries or disabilities. Under the current system we pay copays and such based on income and liquid assets. A fair deal right? But the loophole exists in how they determine assets. We live debt free and our home, cars, etc are not considered.... just our liquid assets and income. Simply by moving regular bank funds to retirement accounts or material investments would affect how much we pay. The reality is that we have sufficient assets to pay more, yet the loopholes say we don't have to do so.
The same applies to many federal and state agencies. There are people getting food assistance money and such that drive $70,000 cars. The reality is that if you want food you should sell or get a loan against your expensive car and buy food. Certainly there is a difference between someone making XX dollars per year with no assets and one making an equal amount that owns two homes outright.
Another example is the tax system in general leaving way too much illegal not taxed trade going on. If they got rid of income tax and made it all sales taxes, people couldn't cheat. You have to pay tax to buy products. All under the table trade, drug money, anything eventually has to be spent or it is of no use to anyone. This also allows for lower taxes on basics, and higher taxes as items move towards wants and luxuries vs basic needs.
The major problem as I see it is politicians trying to buy votes, and voters willing to vote for someone that promises them tax breaks, something for nothing, etc. I would personally have no problem voting for someone that raises my taxes within reason in relationship to my income and assets if in fact they were going towards good long term solutions that future generations would benefit from. As it is these days, it seems they take more taxes and we get crap in return.
Thought I covered that - "close the loopholes and special perks which congress has given to many". :pQuote:
Originally Posted by schmenke
Nor, in principle, would I. In reality I doubt I'd support such a move. The reason being that I do not trust the politicians to honor the other half of the bargain - cutting spending. They are still going to try and buy votes with giveaways.Quote:
Originally Posted by airshifter
Yeah, sorry, I guess we're saying the same thing :p:Quote:
Originally Posted by Starter
If we saw the IRS given proper teeth and with the ability to put most of Wall St in prison, we'd see companies change their ways. The problem is that Wall St pretty well much owns football clubs playing in the Congress Bowl. Mind you, that was spotted more than 140 years ago.Quote:
Originally Posted by Starter
For the first time since the creation of these enormous corporate bodies, one of them has shown its power for mischief, and has proved itself able to override and trample on law, custom, decency, and every restraint known to society, without scruple, and as yet without check. The belief is common in America that the day is at hand when corporations far greater than the Erie; swaying power such as has never in the world's history been trusted in the hands of mere private citizens will ultimately succeed in directing government itself. Under the American form of society, there is now no authority capable of effective resistance.
- Henry Adams, "The New York Gold Conspiracy", Westminster Review magazine October 1870.
If someone had thrown the entire board of Lehmann Brothers in prison in 2008 instead of condoning their actions by rewarding their grift; along with most of the boards of the companies in the Fortune 500, then maybe things might change but until the day that something similar happens, America is condemned to keep on raising the debt ceiling through a series of rolling deficits ad nauseum.