Bush tax.

[Assasin]

I am certain you are not advocating more tax cut to increase revenues as the meatheads(tea party are suggesting)

Yes there are times when tax cut can stimilate the economy and there will be more collection or growth but this is not one of them as we have had a dose of tax cut and money injections since the Bush admin and it has resulted in balooning deficits and most of the top beneficiaries taking their jobs and cuts overseas. We can't continue down the part of just cutting but careful planning and even additional taxes in some cases maybe needed.

[Rudi]

I man I think if you really check it out you'll find that assassin is correct. Bush had the largest deficits ever.

[Islandman]

Show me where I said otherwise?

Let me spell it out again:

I agree FULLY that the Bush admin caused the largest deficits in history

However I DISAGREE that the tax cuts were the cause of it, simply because tax revenues increased after the cuts were in place.

Assasin, no I do not think further tax cuts are the remedy to the current situation, but I do not think I would let them all expire either.

[Assasin]

Well a 3 choices we have no

let them remain

Let the the wealthy pay some

or let us all pay it

Obama shouldn't comprimise on letting it remain and the repubs them no want nobody to pay it so if them can't comprise then let us help the plug a loophole.

That a what mi a say. What you say they should remain?

[Islandman]

I would let some of them remain for a while, like the capital gains tax rate for example. Make the stock market recover a bit more first.

I don't think there would be much damage done by letting the income tax rate for the top group go back to the Clinton-era rates.

All in all, I am for looking at the whole package and seeing what is best for the current situation while recognizing that it is not an exact science.But none of that will happen because its all about politics.

[Assasin]

yeah normally I would think so but the repub them want all or nothing. Them nah deal with some and that is why I said Obama shouldn't cave in.

[Willi]

Shame on you I-Man!!!

How long you know me and know my position on this is consistent. It was predicted BEFORE data even comes in.

Tax revenue is more science than art.
Tax collection is RATE times realizable tax base. Simple

Cut rate while base constant, total rev falls.

So lets examine the base. It can grow or diminish due to underlying econ factors. We know that econ growth, even if unsustainable was robust, so that is a PLUS. It was robust due to easy money, not massive investment due to rich people investing. The credit spree is what gave us the dot.com crash, what recklessly cushioned the impact or that and what fueled the subsequent housing bubble.

The other factor affecting the base is compliance. While it is true that clever tax cuts can improve compliance, especially when overall rate are VERY high, I dont see this in America's case and in any case, it has to dwarf the combined effect of the econ growth AND the cut rate in order to be self financing. Otherwise it is pernicious to the overall tax collection exercise.

Finally, I do agree that spending was also out of control, though the vast amounts of waste went to CORPORATE welfare, not indiv welface as the propaganda implies.