Roll the Bones, on Monday, July 11th, 2011, 2:59 PM, said:
So you would be mad if the Republicans caved and allowed our government to close loopholes for the rich, or even outright raised taxes on the very wealthy?
Classic Dem bully tactic. Everyone wants the tax code to be changed, I didn't say anything about this, nor did I imply that any Republicans had this as a core value. I mean, you read my post, right?
This, despite the fact that every rational economist outside of those speaking on behalf of political gain, agrees that the only possible path to reducing the debt is through tax increases?
This isn't just not true, but it's probably a borderline lie. I believe that you know that you're talking out of your ass here.*opening Principles of Microeconomics book sitting right next to me**Reading"Other things equal, a tax cut is more likely to raise tax revenue if the cut applies to those taxpayers facing the highest tax rates. Economists disagree about these issues in part because there is no consensus about the size of the relevant elasticities. The more elastic that supply and demand are in any market, the more taxes in that market distort behavior, and the more likely it is that a tax cut will raise tax revenue. There is no debate, however, about the general lesson: How much revenue the government gains or loses from a tax change cnanot be computed just by looking at tax rates. It also depends on how the rtax chnage affects people's behavior."*Reading another economists book"What is the implication of this Dead-Weight Loss? When tax rates are low, raising them isn't harmful, and lowering them isn't beneficial. However, when rates are high, raising them is very harmful, and cutting them is very beneficial."http://en.wikipedia....ki/Laffer_curve
"In economics, the Laffer curve is a theoretical representation of the relationship between government revenue raised by taxation and all possible rates of taxation. It is used to illustrate the concept of taxable income elasticity (that taxable income will change in response to changes in the rate of taxation). The curve is constructed by thought experiment. First, the amount of tax revenue raised at the extreme tax rates of 0% and 100% is considered. It is clear that a 0% tax rate raises no revenue, but the Laffer curve hypothesis is that a 100% tax rate will also generate no revenue because at such a rate there is no longer any incentive for a rational taxpayer to earn any income, thus the revenue raised will be 100% of nothing."The only way to reduce our debt is through economic growth, which is something taxation usually murders behind the warehouse down by the river.
It's all mind boggling insane that just the top 25 hedge fund managers get billions in low tax income that you or I don't. I mean really, if there is anything that has become very very glaringly obvious is that all these low taxes on the wealthy have not done a thing for the middle class, the deficit, this country or anything positive.
I don't care about hedge fund managers, and I'm totally in favor of having a simplified tax code.