The End Of The Trade Bubble

Discussion in 'Economics' started by libertad, Feb 11, 2009.

  1. http://www.businessweek.com/bwdaily...op+news_top+news+index+-+temp_news+++analysis

    In addition who is left to foot the tax tab on a progessive basis....

    The deficit will be largely due to tax revenues being decimated....and the Govt will want to tax more from a declining base....

    Once again....10% Consumption Tax ....

    The US Govt will figure it out....

    After its too late ....of course....

    Way too many ASS U ME TIONS....
     
  2. 10% Consumption tax, I don't get it. :confused:

    Seems that would be the last thing we need is to tax spending, even in lieu of income tax.

    It would be great if you're rich and you got everything you need!
    Simple is not better. Not a chance.
     
  3. Very simple....

    The US already imposes a "consumption tax"....


    ie a tube of toothpaste costs $1.00

    One US citizen in the 0% tax bracket will pay $1.00....

    One US citizen in the 20% tax bracket will pay $1.20....

    One US citizen in the 38% tax bracket will pay $1.38....

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    A 10% consumption tax would mean everyone pays $1.10....
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    Most importantly a sole 10% consumption tax will attract the best companies of the world to the US to create jobs and more innovation....

    Every decent company would want to domicile in the US....

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    The current progressive rate in a steep depressionary decline would suggest that much needed tax revenue would decline dramatically with perhaps 70% of the population and companies paying little to no tax....

    In order to have a dependable tax take....the US would need a broadly distributed minimal tax....
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    This would eliminate a huge nonproductive segment of the US and most importantly eliminate the IRS...
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    The government would need to dramatically downsize....

    And most importantly move the F out of the way of capitalism....
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    The US would rock !!!!!!!!!!!!!
     
  4. Bob111

    Bob111

    US citizens already paying 6-7% sales tax(imo-same s*t,different name)..on top of 30-50% income tax..and government having deficit..do you really believe that they will be happy with 10% only? it's great idea...the more your spend on s*t from walmart-the more you pay..i like it,since i'm not a big spender..but i don't think that us government will be happy..
     
  5. Allen3

    Allen3

    Yeah but in reality to keep all the spending , that no one, Dem or Rep would get rid of, it needs to be more like the man in the middle. 20-30 % tax for consumption, not for business or investments, and we could possibly get out of the mess government has made.

    My opinion. It'll never happen. Like asking the fox to not molest the hens. Not going to happen everybody in gov gets off on it. I think the wheels are comin off this puppy and nobody's a driver.

    Remember the soft landing promised by Greenspan and company. Welcome to the softness. I think the times ahead are going to be bad. Nobody's even talking about survival with no injuries, more like if we live they hope we still be able to walk. I not they'll tax our wheel chairs.

    Allen
     
  6. Obviously the US is going to find out the way it is....

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    Here is the way it is....

    Downsize the government commensurate with tax revenues....
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    What the US "lawyers" do not yet understand is that "real money does not grow on trees"....

    Tax revenues with the current model are going to be dramatically lower than a simple 10% consumption tax take....

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    You can revisit this post in about 18 months....

    Watch what happens....