Economics

Here's a scary fact for you.

 Most of America's economic policy is based on fallacy.  That's right.  FALLACY.  Tariffs, import/export policies, minimum wage laws, public works projects, taxation, inflation.  ALL fallacies.

Don't believe me?  Look up Economics In One Lesson, By Henry Hazlitt.  It will open your eyes.

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I hope 1 day soon we can change the tax code.Werekitty info like that you provided is very helpful. We need to also participate by voting and educating ourselves.

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What we really need to do is tear down the huge money-eating government we've got in place, now.

It's been peverted by a bunch of corrupt lawyers, when it should be run by business people, who understand economics.

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Check out this website, www.devvy.com, there are some great articles about taxes, the "FED"(the federal reserve), and many other interesting facts about out government run amuk

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the problem now is that it is run by business people, greedy banker, the lawyers are just the weapons of the greedy bankers

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We need another revolution. Let's start with the FairTax (HR25), as written. Let's take America back. See my post at "Taxes/Fiscal Policy".

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"Look, up until 80 years ago, the government SOMEHOW managed to get by *with no income tax at all.* Even now our current federal budget only gets about 30% of its revenue from income tax.

The Government is quite capable of trimming 30% off its current budget and still accomplish its legitimate duties.
You could go the stupid-simple route and cut EVERYTHING by 30%.

Or you could eliminate a number of things that are superfluous to the government's legitimate duties.

First off, eliminate the income tax, eliminate about 90% of the necessary budget for the IRS.

Eliminate Welfare. For every $1 that reaches a welfare recipient, $100 is spent in bureaucracy. It's like feeding the sparrows by passing the grain through a horse first. ELIMINATE IT. Or cut it back till only those with debilitating physical or mental handicaps are on it. And fire most of the bureaucracy there, too.

Government education. It sucks, it has us in 15th place in mathematics and 60th place in literacy. It spends so much money that private schools that receive vouchers have had to RETURN money because they couldn't spend it all! Privatize it. Put the whole mess up on the auction block.

Social Security. It's called a PYRAMID SCHEME, you stupid rubes, and you're not going to get out of it without someone getting hurt. Stop it NOW before it collapses of its own weight.... in which case the damage will be a hundred times worse.

Government grants and loans. Know what's wrong with them? The government loans money to people no sane banker would touch. Which makes a HASH of the marketplace, driving up costs and risks for everyone. Unless the grant or loan has something to do with the three legitimate duties of government--- Law enforcement, National Defense, or Infrastructure--- ASHCAN IT. Get that stupid Matthew Lesko book and work your way down the list.

Government Subsidies. ASHCAN IT. ESPECIALLY farming subsidies-- which are used for the openly stated purpose of paying people to be nonproductive, and to drive up the price of food. If you don't see a moral problem with at least ONE of those, shut up and sit down till the kindergarten teacher passes out the juice and cookies.

LINE ITEM VETO. and USE it mercilessly on porkbelly projects.

Once the budget has been reduced by the necessary amount, eliminate the federal income tax.

Know what happens after that?

FEDERAL REVENUE WILL GO UP.

See, first of all it happens whenever you reduce taxes. It's basic economics: People have more money--- to save, to spend, and to invest in their own businesses and other people's businesses. As prosperity increases, the amount paid in taxes goes up as well.

Put more simply: which would you rather have---- 30% of the income of 10 minimum wage workers, or 5% of the income of ten millionaires?
Well those 10 minimum wage workers could BECOME ten millionaires if they had more of their own money to invest, if their bosses could afford to pay them more, and if their basic needs cost less.

When you reduce taxes, you increase investment, increase wages, increase marketplace activity, reduce the cost of living across the board.... and increase the amount of revenue that pours into the government coffers.
There is a point of diminishing returns on this (after all, if everyone's tax burden were reduced to zero, there'd be NO federal revenue), but as demonstrated by the fact that every tax reduction since 1900 has resulted in revenue increases, we are yet to even approach that turning point."

Ralph Hayes Junior

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 "Even now our current federal budget only gets about 30% of its revenue from income tax. "

 Not one dollar of our tax money goes to the budget. Our tax money, 100% of it goes to the Federal Reserve to pay the national debt. The budget is money borrowed from the "Fed". The money that the government  borrows from the "Fed" is printed with nothing to back it, There is no gold or silver standard in this country anymore and that money is literally worth nothing.

www.devvy.com Read the article on Taxation

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Here's a some more chewing gum for the brain:

I filed my '97 tax return and told my son it was the last year I could claim him as a deduction and not to claim himself when he filed.  Well, he did and both returns kicked out.  I told him I would back him off mine and deal with the IRS, trying to be a good mom.  I worked with the IRS and got the return corrected and owed $. They said they'd charge no penalties and allowed my other deductions and filing status.  It wasn't much to pay, and I had sent them my agreement, etc.  Next thing I know, I got a $4000 bill.  I have had every refund taken, every credit taken, every EIC taken, and the penalties and interest averaged an increase of about $1000 a year added.  I became disabled and couldn't afford to pay anything and the big black hole got deeper.  I called the big deaf ear and asked, "What happened to me?"  I actually got someone to finally look at it...and I was told I have been double billed on the same return year...that I had paid it in full a long time ago.  They said it needed to get stopped because any further collection activity just made it worse. They gave me instructions, and I followed them.  It is now 2007, and I still have no idea if I'll ever see a dime of what they took.  What is really getting to me is that this debt is being offset by an Earned Income Credit.  I told them this is ludicrous.  They are working on their jobs at the IRS & paying taxes to offset a debt I don't actually owe!!! How many other people are paying off the IRS with other tax money because of a frequently made IRS booboo???  FYI: I did get a letter of apology for any inconvenience they may have caused me.

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The IRS doesn't like to admit it's mistakes.  Especially if it gets them money.

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Congress will never simplify the tax codes to the extent that it would nullify the need for the I.R.S. because it is one of the governments largest employers and provides cushy jobs with reciprocal votes for members of the House and Senate.

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That's why we need to vote out the old fogies.  We've got a bunch of old folks, up there, who's minds are stuck in the past.

Heck, we need to have another revolution, kill all the politicians, and start from scratch.

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Las Vegas premier casino magnate Steve Wynn has come up with an income sharing idea which stops just short of being a new socialistic plan. In Mr Wynn's plan, the dealers, who play to the customer as much as is allowed in order to make the customer enjoy losing their money, are now , by his decree, giving a percentage of their tip earnings to the pit bosses, who's job is to make sure no customer has too lucky of a streak, which must then be softened by good natured dealers. This is being done to redistribute the wealth, to management. I guess it's a good idea for the pit bosses, but if it starts there, it only seems fair that a good day for the casino should also be redistributed amongst all of the employees of the casino who keep the customer coming back to lose their money? Just a Just thought which might be spread to include the oil companies who double dip into profits when the price of crude oil goes up, the nation's reserves are included so the oil companys wells produce more profit from their existing wells, along with the profit from raising prices on gas and other by products. The real refinery job has been done in the way economics is sold to the end user, us, the customer.

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That's why we need to vote out the old fogies. We've got a bunch of old folks, up there, who's minds are stuck in the past.

Actually we need to do more than that. There's a huge network of aides, and other legal parasites like lobbysts. If we only removes the public heads, the network is very capable of running without them. The whole system needs to be stamped out. That means getting rid of anybody with a connection to the White House.

I only see this happening with an event so huge, that the government collapses, giving way for decent folk to restart it.

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 "Even now our current federal budget only gets about 30% of its revenue from income tax. "

 Werekitty,

 Where on earth did you come up with that percentage?  Based on CBO/.OMB estimates for 2007, individual income taxes account for 46% of the total Federal revenue, Corporate income taxes account for 12%, FICA taxes (payroll taxes on income) account for 36%, and customs, excise, estate, and miscellaneous taxes account for the remaining 6%.  It seems to me that income taxes of one sort or another provide 94% of all federal revenue. 

 

What is your source? 

The source is listed at the bottom of the entry.  Apparantly HIS source was wrong.

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