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Are all tax cuts good tax cuts of course not and they do not reduce the size of government
Are all tax cuts good tax cuts of course not and they do not reduce the size of government
By razoo
15 Jul 2023 5:42 am in No Holds Barred Political Forum
15 Jul 2023 5:42 am
Friedman believed government was too large and intrusive, and that by cutting taxes, the size of government would be reduced.
Our disagreement lies in the ability of any tax cuts to achieve their prescribed ends: namely shrinking the size of government. Remember, it was not tax cuts per se that Friedman advocated but rather a retrenchment in the state.
Our view, which we developed in a recent study entitled Tax Payers and Tax Takers, is that tax relief that results in larger and larger shares of the population being exempt from paying any meaningful taxes leads to more demand, not less, for government.
The trouble with removing large numbers of people from the cost of paying taxes is that it establishes the foundation for ever-increasing demand for more government programs regardless of their actual benefits. The democratic decision-making process gets distorted when large segments of the population are relieved of paying the cost of government.
An example of this phenomenon is playing out in the U.S. In 2011, according to the Tax Policy Center, a little more than 46 per cent of American tax units individuals or households paid no federal income tax. Almost 28 per cent paid neither income nor payroll taxes.
https://www.fraserinstitute.org/article ... -cuts-good
Our disagreement lies in the ability of any tax cuts to achieve their prescribed ends: namely shrinking the size of government. Remember, it was not tax cuts per se that Friedman advocated but rather a retrenchment in the state.
Our view, which we developed in a recent study entitled Tax Payers and Tax Takers, is that tax relief that results in larger and larger shares of the population being exempt from paying any meaningful taxes leads to more demand, not less, for government.
The trouble with removing large numbers of people from the cost of paying taxes is that it establishes the foundation for ever-increasing demand for more government programs regardless of their actual benefits. The democratic decision-making process gets distorted when large segments of the population are relieved of paying the cost of government.
An example of this phenomenon is playing out in the U.S. In 2011, according to the Tax Policy Center, a little more than 46 per cent of American tax units individuals or households paid no federal income tax. Almost 28 per cent paid neither income nor payroll taxes.
https://www.fraserinstitute.org/article ... -cuts-good
15 Jul 2023 5:49 am
As the U.S. has no national sales tax, this means more than one-in-four Americans see no direct cost for the federal government.
Even when all federal taxes are included, a significant percentage of Americans simply dont have any real skin in the tax game. In 2011, the bottom 40 per cent of earners in the U.S. paid just 2.9 per cent of all federal taxes while earning a little over 12 per cent of total income.
One of the reasons so many Americans are exempt from income and payroll taxes is the Earned Income Tax Credit (EITC). The EITC was originally introduced in 1975 to assist low-income workers in overcoming what was called the welfare wall. As low-income workers earn more income either by working more or getting better jobs, they often lose benefits and subsidies. The EITC was designed to assist them through this transition.
The problem is the EITC has grown from a targeted program for low-income workers to a general program benefitting many middle-class households. One sign of its expansion is that almost one-in-four American families now qualify for EITC benefits whereas only nine per cent qualified in 1975.
The building blocks for such problems are now present in Canada. In 2007, Canada introduced its version of the EITC, the Working Income Tax Benefit (WITB). In 2009, WITB was increased markedly, increasing in cost to a little over $1 billion from $480 million. This in part explains the increase in the percentage of Canadian tax-filers who face no federal income tax, which has already increased to 37.7 per cent in 2010 from 32 per cent in 2000.
The experience of the United States is a cautionary tale for Canadians as we potentially begin down a similar path. That is not, however, to say that we do not favour tax relief. Indeed, we have repeatedly explained why large-scale personal income tax relief must be on the agenda over the course of this decade. It is the one area of taxes where Canada remains woefully uncompetitive.
The key to tax relief is that it balances the need for lowering the burden of government (i.e. reducing tax rates) against having citizensexcluding those with low incomepay some visible price for government. (The GST achieves much of this latter goal, which is one reason we opposed its reduction.)
That balance looks something like a dramatically simplified income tax system with fewer and lower tax rates, a drastic reduction in the loopholes, privileges, and tax credits in the tax system, and a national sales tax. In other words, we need tax cuts but the right ones.
https://www.fraserinstitute.org/article ... -cuts-good
Even when all federal taxes are included, a significant percentage of Americans simply dont have any real skin in the tax game. In 2011, the bottom 40 per cent of earners in the U.S. paid just 2.9 per cent of all federal taxes while earning a little over 12 per cent of total income.
One of the reasons so many Americans are exempt from income and payroll taxes is the Earned Income Tax Credit (EITC). The EITC was originally introduced in 1975 to assist low-income workers in overcoming what was called the welfare wall. As low-income workers earn more income either by working more or getting better jobs, they often lose benefits and subsidies. The EITC was designed to assist them through this transition.
The problem is the EITC has grown from a targeted program for low-income workers to a general program benefitting many middle-class households. One sign of its expansion is that almost one-in-four American families now qualify for EITC benefits whereas only nine per cent qualified in 1975.
The building blocks for such problems are now present in Canada. In 2007, Canada introduced its version of the EITC, the Working Income Tax Benefit (WITB). In 2009, WITB was increased markedly, increasing in cost to a little over $1 billion from $480 million. This in part explains the increase in the percentage of Canadian tax-filers who face no federal income tax, which has already increased to 37.7 per cent in 2010 from 32 per cent in 2000.
The experience of the United States is a cautionary tale for Canadians as we potentially begin down a similar path. That is not, however, to say that we do not favour tax relief. Indeed, we have repeatedly explained why large-scale personal income tax relief must be on the agenda over the course of this decade. It is the one area of taxes where Canada remains woefully uncompetitive.
The key to tax relief is that it balances the need for lowering the burden of government (i.e. reducing tax rates) against having citizensexcluding those with low incomepay some visible price for government. (The GST achieves much of this latter goal, which is one reason we opposed its reduction.)
That balance looks something like a dramatically simplified income tax system with fewer and lower tax rates, a drastic reduction in the loopholes, privileges, and tax credits in the tax system, and a national sales tax. In other words, we need tax cuts but the right ones.
https://www.fraserinstitute.org/article ... -cuts-good
15 Jul 2023 6:11 am
The Bottom Line ......... tax cuts reduce government revenues and create either a budget deficit or increased sovereign debt.
A budget deficit occurs when money going out (spending ) exceeds money coming in (revenue ) during a defined period. Thus each time congress approves preferential tax cuts and tax dollar subsidies the USA is creating a budget deficit.
Sovereign debt is issued by a country's government to borrow money. Sovereign debt is also known as government debt, public debt, and national debt. Governments borrow for a variety of reasons, from financing public investments to boosting employment.
A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it will not pay (or only partially pay) its debts (repudiation), or it may be unannounced.
A credit rating agency will take into account in its gradings capital, interest, extraneous and procedural defaults, and failures to abide by the terms of bonds or other debt instruments.
A budget deficit occurs when money going out (spending ) exceeds money coming in (revenue ) during a defined period. Thus each time congress approves preferential tax cuts and tax dollar subsidies the USA is creating a budget deficit.
Sovereign debt is issued by a country's government to borrow money. Sovereign debt is also known as government debt, public debt, and national debt. Governments borrow for a variety of reasons, from financing public investments to boosting employment.
A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it will not pay (or only partially pay) its debts (repudiation), or it may be unannounced.
A credit rating agency will take into account in its gradings capital, interest, extraneous and procedural defaults, and failures to abide by the terms of bonds or other debt instruments.
15 Jul 2023 6:37 am
What you don't realize, ****, is that YOU JUST LAID OUT THE BEST ARGUMENT for a NATIONAL SALES TAX to REPLACE THE INCOME TAX since EVERYONE will have to contribute to the TAX BASE OF THIS NATION with ZERO EXEMPTIONS!!razoo » 15 Jul 2023, 5:42 am » wrote: ↑ Friedman believed government was too large and intrusive, and that by cutting taxes, the size of government would be reduced.
Our disagreement lies in the ability of any tax cuts to achieve their prescribed ends: namely shrinking the size of government. Remember, it was not tax cuts per se that Friedman advocated but rather a retrenchment in the state.
Our view, which we developed in a recent study entitled Tax Payers and Tax Takers, is that tax relief that results in larger and larger shares of the population being exempt from paying any meaningful taxes leads to more demand, not less, for government.
The trouble with removing large numbers of people from the cost of paying taxes is that it establishes the foundation for ever-increasing demand for more government programs regardless of their actual benefits. The democratic decision-making process gets distorted when large segments of the population are relieved of paying the cost of government.
An example of this phenomenon is playing out in the U.S. In 2011, according to the Tax Policy Center, a little more than 46 per cent of American tax units individuals or households paid no federal income tax. Almost 28 per cent paid neither income nor payroll taxes.
https://www.fraserinstitute.org/article ... -cuts-good
See, you post **** with ONE INTENT and it makes the BEST ARGUMENT for what WE HAVE BEEN TELLING YOUR IDIOT CLASS FOR DECADES!!! EVERYONE needs to PAY INTO THE SYSTEM if they are going to GET SOMETHING OUT OF IT!!
!!!
15 Jul 2023 6:37 am
none of your buisness === I will say more than Trump who paid none........
15 Jul 2023 6:59 am
razoo » 15 Jul 2023, 5:42 am » wrote: ↑ Friedman believed government was too large and intrusive, and that by cutting taxes, the size of government would be reduced.
Our disagreement lies in the ability of any tax cuts to achieve their prescribed ends: namely shrinking the size of government. Remember, it was not tax cuts per se that Friedman advocated but rather a retrenchment in the state.
Our view, which we developed in a recent study entitled Tax Payers and Tax Takers, is that tax relief that results in larger and larger shares of the population being exempt from paying any meaningful taxes leads to more demand, not less, for government.
The trouble with removing large numbers of people from the cost of paying taxes is that it establishes the foundation for ever-increasing demand for more government programs regardless of their actual benefits. The democratic decision-making process gets distorted when large segments of the population are relieved of paying the cost of government.
An example of this phenomenon is playing out in the U.S. In 2011, according to the Tax Policy Center, a little more than 46 per cent of American tax units individuals or households paid no federal income tax. Almost 28 per cent paid neither income nor payroll taxes.
https://www.fraserinstitute.org/article ... -cuts-good
Its over, same thing happens to all fiat currency systems, interest on the debt is about one trillion per year and the gov is still passing out feudal monarchy styled subsidies to various favored corporations who have little or no functional participation in the USA economy.
VP Harris: "when we invest in clean energy and electric vehicles and reduce the population more of our our children can breath clean air and drink clean water."
When the all the strange paranoid plans and experiments fail the fuedal commune group peasant who payed for all the stupid failed crap takes the blame and the solution is death.
The rest of us can go limping down the open road with nothing but a few clothes and some experimental medical treatment paperwork in the WWIII conditions that government is creating.
Delusional paranoid craziness, USA is only a small fraction of the world population.
Bipartisan spending Bill Contains $575 Million for ‘Reproductive Health’ in targeted areas where Population Growth ‘Threatens Biodiversity’ (Grizzly bears and other large predator animals that make farming or ranching impossible).
------------------------------------------------------------------------------------------------------------------------------------------------------------------------------
"We have a population that is not reproducing on its own with the same level that it used to," Schumer said during the press conference. "The only way we're going to have a great future is if we welcome and embrace immigrants, the dreamers and all of them.
https://i.etsystatic.com/28184958/r/il/ ... 5_97i8.jpg
15 Jul 2023 7:46 am
Hey numbnuts! What is the size of government within one species controlling genetic outcomes only arriving today all the time?razoo » 15 Jul 2023, 5:42 am » wrote: ↑ Friedman believed government was too large and intrusive, and that by cutting taxes, the size of government would be reduced.
Our disagreement lies in the ability of any tax cuts to achieve their prescribed ends: namely shrinking the size of government. Remember, it was not tax cuts per se that Friedman advocated but rather a retrenchment in the state.
Our view, which we developed in a recent study entitled Tax Payers and Tax Takers, is that tax relief that results in larger and larger shares of the population being exempt from paying any meaningful taxes leads to more demand, not less, for government.
The trouble with removing large numbers of people from the cost of paying taxes is that it establishes the foundation for ever-increasing demand for more government programs regardless of their actual benefits. The democratic decision-making process gets distorted when large segments of the population are relieved of paying the cost of government.
An example of this phenomenon is playing out in the U.S. In 2011, according to the Tax Policy Center, a little more than 46 per cent of American tax units individuals or households paid no federal income tax. Almost 28 per cent paid neither income nor payroll taxes.
https://www.fraserinstitute.org/article ... -cuts-good
Oh look, I debunked Freidman back to actually being just another reproduction making a living misdirecting people away from understanding evolving in plain sight.
15 Jul 2023 8:45 am
It's because there is no reality check when it comes to gubment spending coupled with the socialist democrats doling out an endless supply of **** to a forever growing population of lazy ****...razoo » 15 Jul 2023, 5:42 am » wrote: ↑ Friedman believed government was too large and intrusive, and that by cutting taxes, the size of government would be reduced.
Our disagreement lies in the ability of any tax cuts to achieve their prescribed ends: namely shrinking the size of government. Remember, it was not tax cuts per se that Friedman advocated but rather a retrenchment in the state.
Our view, which we developed in a recent study entitled Tax Payers and Tax Takers, is that tax relief that results in larger and larger shares of the population being exempt from paying any meaningful taxes leads to more demand, not less, for government.
The trouble with removing large numbers of people from the cost of paying taxes is that it establishes the foundation for ever-increasing demand for more government programs regardless of their actual benefits. The democratic decision-making process gets distorted when large segments of the population are relieved of paying the cost of government.
An example of this phenomenon is playing out in the U.S. In 2011, according to the Tax Policy Center, a little more than 46 per cent of American tax units individuals or households paid no federal income tax. Almost 28 per cent paid neither income nor payroll taxes.
https://www.fraserinstitute.org/article ... -cuts-good
“Show me the man and I’ll find you the crime”
LAVRENTIY BERIA
15 Jul 2023 8:47 am
a consumer based flat tax is fair across the board whether you purchase a pack of gum or a yacht...too bad it's racist...Beekeeper » 15 Jul 2023, 6:37 am » wrote: ↑ What you don't realize, ****, is that YOU JUST LAID OUT THE BEST ARGUMENT for a NATIONAL SALES TAX to REPLACE THE INCOME TAX since EVERYONE will have to contribute to the TAX BASE OF THIS NATION with ZERO EXEMPTIONS!!
See, you post **** with ONE INTENT and it makes the BEST ARGUMENT for what WE HAVE BEEN TELLING YOUR IDIOT CLASS FOR DECADES!!! EVERYONE needs to PAY INTO THE SYSTEM if they are going to GET SOMETHING OUT OF IT!!
“Show me the man and I’ll find you the crime”
LAVRENTIY BERIA
15 Jul 2023 8:49 am
razoo » 15 Jul 2023, 6:37 am » wrote: ↑ none of your buisness === I will say more than Trump who paid none........
“Show me the man and I’ll find you the crime”
LAVRENTIY BERIA
15 Jul 2023 9:01 am
Flat consumption taxes are regressive (shift the tax burden to the less well-off). The ratio of tax obligation to income tends to shrink as income increases because high-earners tend to consume proportionally less of their income.ROG62 » 15 Jul 2023, 8:47 am » wrote: ↑ a consumer based flat tax is fair across the board whether you purchase a pack of gum or a yacht...too bad it's racist...
15 Jul 2023 9:03 am
Not that I am defending others as much as defending my own privacy, it isn't your need to know. You take care of your own, and everyone else takes care of their own in a social order providing the needs people have to survive as civily possible when living eternally separated now. Everyone needs things covered from raw materials to finished goods and an economic system that provides a separate means of payments between all things required to have everyone an equal part of the whole process of making evolving easier for all 5 generation gaps living.Z09 » 15 Jul 2023, 8:54 am » wrote: ↑ So you won't tell us what you paid .
...But what Trump paid is your business?
Why is that?
Life isn't a dog eat dog social order, that is a damned myth creating reasonable doubt so far. There is a universal balancing point between all extrememes present. Understand that time your body is part within being a replacement of past ancestry and ancestors adapting forward uniquely here.
there will always be conflicts, there will always be calamities natural and social, but governing by reasonable doubt doesn't resolve anything as much as amplify everything out of proportion when events do happen.
Evolving sustains eternal separation of current population, why am I the only person in this atmosphere acknowledging it?
15 Jul 2023 9:05 am
razoo » 15 Jul 2023, 6:37 am » wrote: ↑ none of your buisness === I will say more than Trump who paid none........
15 Jul 2023 9:15 am
The tax burden should be shifted to those not currently paying into the system. If poor voters had to pay for shrimp on treadmills or million dollar studies on alcoholism in the lesbian community perhaps they would start pushing for responsible spending? Right now 50% of citizens have no vested interest in fiscal responsibility. If all are paying they might develop a different opinion on government spending.maineman » 15 Jul 2023, 9:01 am » wrote: ↑ Flat consumption taxes are regressive (shift the tax burden to the less well-off). The ratio of tax obligation to income tends to shrink as income increases because high-earners tend to consume proportionally less of their income.
15 Jul 2023 9:17 am
You have 6 degrees of deflecting actual life from any conversations. I can increase that to 31 and only be including you, your parents, your grandparents, your great grandparents, your great great grandparents omitting siblings of each generation gap behaving same way you are.Z09 » 15 Jul 2023, 9:06 am » wrote: ↑ My point is simple
Razoo has two set of rules.
1) One for Trump
2). One for himself
Now add the 8 billion other humans in this atmosphere practicing reasonable doubt forward now.
that is how I imagine life beyond my time limited to adapting in space self evidently one of a kind.
Oh wait, that isn't imagining anything is possible, that is navigating what never was possible.
15 Jul 2023 9:18 am
that doesn't change the validity of my statement: Flat consumption taxes are regressive (shift the tax burden to the less well-off). The ratio of tax obligation to income tends to shrink as income increases because high-earners tend to consume proportionally less of their income. If you want to raise taxes on poor voters, just raise taxes on affluent voters as well.Neo » 15 Jul 2023, 9:15 am » wrote: ↑ The tax burden should be shifted to those not currently paying into the system. If poor voters had to pay for shrimp on treadmills or million dollar studies on alcoholism in the lesbian community perhaps they would start pushing for responsible spending? Right now 50% of citizens have no vested interest in fiscal responsibility. If all are paying they might develop a different opinion on government spending.
15 Jul 2023 9:22 am
What validity? Hypothetical values are never more than symbolism over substance intellectually brought into social behavior fruition. It is all done to sustain the false narrative of tomorrow.
15 Jul 2023 9:24 am
those are **** democratic talking points...maineman » 15 Jul 2023, 9:01 am » wrote: ↑ Flat consumption taxes are regressive (shift the tax burden to the less well-off). The ratio of tax obligation to income tends to shrink as income increases because high-earners tend to consume proportionally less of their income.
Germany has an 18% VAT added onto every purchase besides personal/business income taxes...no whining or exclusions...just pay it...
“Show me the man and I’ll find you the crime”
LAVRENTIY BERIA
15 Jul 2023 9:48 am
The Bottom Line ......... tax cuts reduce government revenues and create either a budget deficit or increased sovereign debt.
A budget deficit occurs when money going out (spending ) exceeds money coming in (revenue ) during a defined period. Thus each time congress approves preferential tax cuts and tax dollar subsidies the USA is creating a budget deficit.
Sovereign debt is issued by a country's government to borrow money. Sovereign debt is also known as government debt, public debt, and national debt. Governments borrow for a variety of reasons, from financing public investments to boosting employment.
A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it will not pay (or only partially pay) its debts (repudiation), or it may be unannounced.
A credit rating agency will take into account in its gradings capital, interest, extraneous and procedural defaults, and failures to abide by the terms of bonds or other debt instruments.
A budget deficit occurs when money going out (spending ) exceeds money coming in (revenue ) during a defined period. Thus each time congress approves preferential tax cuts and tax dollar subsidies the USA is creating a budget deficit.
Sovereign debt is issued by a country's government to borrow money. Sovereign debt is also known as government debt, public debt, and national debt. Governments borrow for a variety of reasons, from financing public investments to boosting employment.
A sovereign default is the failure or refusal of the government of a sovereign state to pay back its debt in full when due. Cessation of due payments (or receivables) may either be accompanied by that government's formal declaration that it will not pay (or only partially pay) its debts (repudiation), or it may be unannounced.
A credit rating agency will take into account in its gradings capital, interest, extraneous and procedural defaults, and failures to abide by the terms of bonds or other debt instruments.
15 Jul 2023 10:05 am
Could address those concerns with property taxes and luxury goods taxes.maineman » 15 Jul 2023, 9:18 am » wrote: ↑ that doesn't change the validity of my statement: Flat consumption taxes are regressive (shift the tax burden to the less well-off). The ratio of tax obligation to income tends to shrink as income increases because high-earners tend to consume proportionally less of their income. If you want to raise taxes on poor voters, just raise taxes on affluent voters as well.
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