The Laffer Curve, employment and the Myth about Taxes

Discussion in 'Economics' started by retaildaytrader, May 24, 2010.

  1. In another thread, it was stated that we have the lowest taxes in the world. This is a myth. What happens is that politicians cannot tax our income any more then it is or they will eventually get voted out of office along with the rest of their party. Income taxes will never go up...however, every other thing that can be taxed will be taxed and the cost will eventually reach the tax payers.

    For example, gasoline. The price of gasoline is comprised of 18.4 cents federal tax and another 20-30 cents state tax. Many people dont know that a good chunk of what they pay at the pump is really taxes. So every time you pay at the pump, the IRS is right behind the station collecting some of that money you hand to the attendant. Well, I could go on through a list of examples endlessly, but I will make one more example.

    Corporations are heavily taxed and regulated in pretty much everyway you can conceive. The prices you pay for goods are again part taxes. So you went to the store recently and saw the price of juice at 6 dollars a gallon. 1-2 dollars of that is probably taxes....not to mention the money to pay for the taxes was also probably taken out of the pay of the store employees.

    As you are taxed more and more then there comes no incentive to work. Why work when all of your money is essentially given away to the tax man? Why own a home when property taxes are so high?

    As the European economies have learned the hard way, the more taxes there are the more unemployment that how does Europe tolerate such high levels of unemployment? They do it through entitlements where no one has to worry about health insurance and lower income people get lots of hand outs. You can essentially live for free in places like Greece...the problem is that eventually someone has to pay the bill....

    So the way to solve the employment issue is lower taxes and deregulate dramatically much like Reagan did back in the early 80s. As it is, we will probably be stuck here at this level of unemployment until Obama is voted out of office and a person can come into deregulate. Already Obama is going down the entitlement trail just like Greece, Spain and Britain which are now facing severe economic crisis with riots in the street and folks getting killed...
  2. retaildaytrader said ""however, every other thing that can be taxed will be taxed and the cost will eventually reach the tax payers.""

    Indeed, this is happening now. Income taxes, however, are going up, and will continue to go up for those who are "RICH", according to the Libboe's definitition.
    I've been hearing the $250,000 income cut-off number for higher taxes since I was 12. Yes, 12. I'm now 53, so yea, that's the last 41 years. A close family member was a Liberal activist, hooked up with local Democratic activists, polilticians and liberal political "operatives". As a 12 and 13 yr old kid, I heard stuff coming from my living room I didn't believe. Now I do.
    I could tell ya'l shit that,...well,,you wouldn't believe me, so what's the point. Get ready to hear it soon tho.
    I'm fully convinced one day soon we'll have all of our assets taxed, even a Federal Asset Tax on our houses.
  3. make up for the mortgage interest deduction (2nd most expensive tax subsidy; the first is the deduction for health insurance the upper middle-class sucked out of everyone else for years) you sucked from the blood of the renters all these years??? Actually, it would take years and years and years to make up for that.
    Nothing is more pathetic than an upper middle-class scion whining about taxes. Welcome to paying your fair share.
    Actually not. It will take someone with more balls than Obama to make you pay what you owe.
  4. I looked online about car rental reservations...under the base price is a "security fee" and then there is the "sales tax". Anything that you buy...anything that you do...carries a tax or fee. Drive down the road and there is a toll. I guess if you do not buy anything, dont go anywhere and dont own anything you will be ok.
  5. Bob111


    yes 250K per family -this IRS and Barry O definition of "rich" is a joke. specially,when 220K line is applies to a single tax payer.
    gas taxes-they should be published at the gas station and updated just as a price-daily. i don't like this "all taxes included" signs.describe them in full damn it
  6. 1982 Reagan signed the Garn-St Germain Act into law. As he signed the bill Reagan told the audience" i think we hit the jackpot"

    opening the door for S&L banks to invest in any scheme they want, with Government insurance of 100,000 per account

    deregulation always ends up in tax payer bailout. Instead of listening to ideology and theory try researching history
  7. If it were not for Reagan, then the greatest expansion of growth in United States history would not have occurred. Many folks became very wealthy as a result of the 80s/90s.

    Would you have liked for the economy of the 70s to persist for 20 or so more years? I think all the convincing you would need is to board an NYC subway during that time to find a gun to the back of your head and someone trying to get your wallet. Those times were far from being kind and there were many tragic stories.

    Today is nothing like the 70s and you surely would not want to go back to that experience.
  8. he also ran up the biggest deficits to that date. Anybody can create a boom or bubble on borrowed money.what he did was nothing clever
  9. Aok



    Let me preface this by saying I liked Regan on balance.

    But Regan was no rose.

    Barry is certainly no boon.

    And the only difference between present day Republicans/Democrats is...

    Republicans want slave wages - and the Democrats want slaves.

    It seems the choices are: Statists who will dole out crumbs, and Capital feudalists who will allow me to purchase my own crumbs.

    I hope you're not suggesting that the answer in the Gulf is for BP to be LESS regulated? This at the same time, the State/Fed cut via taxes exceeds BP's profit margin? Thus the govt is going to do squat to the golden goose.

    I trust BP as much as I trust Obama.

    And thats the real problem no leadership that isnt bought off by some interest. Either authoritarian or corporate.

    Taxes are just the tool used to turn the screws to the middle class. It's all part of the plan.

    Once they become serfs, it's all over for the USA. And unless you're connected, "rich" guys will go down too.

    Scapegoats are necessary for Hegelian consolidations.

    One way or the other by 2020 all shall be revealed.

    And dont tell me about Romney.

    Who the hell is in the repub dugout who's going to usurp Barry in 2012?

    The recanting of the div tax rate is just the lube job before the real reaming begins.
    #10     May 25, 2010