Can Income Tax Hikes Close the Deficit?

[buster2209]

Ummmm, nope!

http://taxprof.typepad.com/taxprof_b.../11/a-952.html

A 95.2% Income Tax Rate?

The Tax Foundation computes the income tax rates necessary to close the deficit:

The original report entitled "Can Income Tax Hikes Close the Deficit?" can be viewed here.

As somebody correctly pointed out in the comments section of the blog, this is of course hypothetical as if the tax rates went to these crazy levels, people would quit working and claim welfare checks instead.

[ehidle]

Of course, the study probably doesn't take into consideration that tax rates of that magnitude would destroy the tax base, and the entire economy along with it.

The first thing that would happen with rates like that would be that 30 million people would lose their jobs.

[buster2209]

Originally Posted by ehidle

Of course, the study probably doesn't take into consideration that tax rates of that magnitude would destroy the tax base, and the entire economy along with it.

The first thing that would happen with rates like that would be that 30 million people would lose their jobs.

I think it was purely a mathematical exercise.

The report didn't take into account state taxes which would easily push the top bracket of tax payers over 100%.

Higher taxes just send 'capital' overseas, we all know that!

In reality, the Fed counterfeits, I mean 'prints', more money or the Government spends less. Option 1 has obviously been chosen as voters cannot be bought by reducing services.

[addicted2freedom]

Let's see a study on whether spending cuts can close the deficit

[LorDiego01]

With such massive tax increases, expect to see a LOT more people working under the table.

[buster2209]

Originally Posted by addicted2freedom

Let's see a study on whether spending cuts can close the deficit

Rep sent for making me laugh!

I can just imagine if the Government did that report, the conclusion would go along the lines of spending cuts can close the deficit but this is counter productive to the Economy, because Keynesian economic theory advocates Government create a deficit in order to keep the economy healthy.

Obviously they'd throw in some Krugmann quotes, a ton of figures, and some other BS that will baffle the majority of us as it will be worded in such an obtuse manner to make no sense to people who don't speak 'bureaucrat'.

Originally Posted by LorDiego01

With such massive tax increases, expect to see a LOT more people working under the table.

Key phrase word there, more........

[ungawa]

So, if we can't fix the deficit, I guess the debt is 100x off the table. I'm talking the real, accrual, BAP dept.

[buster2209]

Originally Posted by ungawa

So, if we can't fix the deficit, I guess the debt is 100x off the table. I'm talking the real, accrual, BAP dept.

No, all money is debt, that is the problem with a privately run central bank.

[ungawa]

Originally Posted by buster2209

No, all money is debt, that is the problem with a privately run central bank.

I'm talking about the $100 trillion debt of the federal government on a BAP basis. Not the $1 or $2 trillion deficit or the $11 trillion debt on a cash basis.

[buster2209]

Originally Posted by ungawa

I'm talking about the $100 trillion debt of the federal government on a BAP basis. Not the $1 or $2 trillion deficit or the $11 trillion debt on a cash basis.

I know, I was trying to make the point that even if we got rid of the deficit (which will never happen), we'd still have other Government debts to contend with.