Arkansas Blog

Well, there is a simple solution to one of those tax problems. Why don't you advocate the removal of taxes on 401(k) and IRAs? In fact, why don't we remove all taxes on any pension. Since the vast marjority of those who retire are NOT 'rich' then it will be more equitable. How about it?

There is even a more simple solution to the whole thing. TAX ALL INCOME AT THE SAME RATE.

The deficit would be eliminated in 6 years.

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A flat income tax, eLwood. Have you been sifting through the AR greenery so early in the day? *s*

Balancing the budget right now.. is among the most dangerous of meme's one could possibly entertain.

We need to spend... invest now. big time. But not in most of the manner we see in the current O proposal.

Obama included more corporate bailout money in his "stimulus" bill and 300 billion in tax cuts.

And this is in addition to the remaining 350 billion in bailout money still at the ready... and quite possibly about to be released by congress or through a presidential veto if congress tries to change their minds.

None of the tax breaks.. or continued corporate bailouts will do one thing to say enough already to all the failings which have been apparent since Reagan.

Will do nothing to change or economy to one which is not paper based.. or one which gives us chance at avoiding either major deflation or Japanification, if we are lucky.

This would have been an outrage if McCain were elected and trying to do it now... We don't need another Reagan, but without a huge effort (outcry) we are about to have one.

It's way past time for the rich to pay for the last thirty years (thirty years which have only helped them.. and helped them greatly as Max demonstrates).. and way past time for a flattening of all the IRS tax loopholes the rich and corporations receive.

"There is even a more simple solution to the whole thing. TAX ALL INCOME AT THE SAME RATE.

The deficit would be eliminated in 6 years." eLwood

eLwood- I have to kindly question your statement, because you failed to mention a specific tax rate that would achieve such a result. Let's use a preposterous example, say a 1% tax rate. Would that achieve the goal of eliminating the deficit in 6 years? I think we would agree the answer is no. Now let's change the tax rate to 95%. Would it still take 6 years to eliminate the deficit? I hope we would still agree the answer is probably no. I suspect neither rate used as examples above would achieve your deficit elimination goal in close to 6 years.

Note- I'm not arguing that there is no rate that would achieve your goal in approximately 6 years. But you didn't say specifically what that rate is.

Taxing all income at the same rate has nothing to do with how long it would take to eliminate the deficit unless I've got the math all wrong. What say you?

Note I said ALL INCOME...not just some of it. Tax churches which make profits.
Eliminate fictitious deductions from income, and exemptions. Who do think profits
from government debt? The rich who hold their tax exempt bonds-debt instruments.

"Farm Income/Loss" is presently the preferred way to reduce taxes for many of the rich
in suburban areas. Clean it up. I used to do returns for fellas who never made a profit on
the horse farm (maintained for wives and kids) they deducted from their proff income.

Additionally, a family is not so unlike a bidness. There's revenue then there's income, which is
revenue minus expenses.

And, of course, I was having some fun with strange.

Double the size of IRS white crime division.
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white crime = white collar crime.

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I'll agree with eLwood on this one. A flat-rate tax system with the loopholes eliminated would be the fairest and most manageable solution.

Don't you people remember the debunking of Rev. Grabmore's hare-brained scheme merely months ago? Click on the blue Yo to see an uncommonly balanced discussion.

The appropriate rate for Capital Gains taxes is 0. Capital Gains is not income because there is no guarantee of return. Each percentage point of Capital Gains tax upwards from zero, decreases the standard of living for everyone. All standard of living increases come from innovation. Innovation is driven by investment, which is driven by incentive. Capital allocated by a free market flows towards efficiency, which creates not only jobs and abundance, but jobs that are rewarding and give back to society more than they take in. Not just jobs for the sake of jobs. The reason Capitalism works is because, for example, the value Wal-Mart gives to society is greater in value than the 200 billion market Cap it enjoys.
The 1917-1989 socialist experiment was the most disastrous economic experiment in history. The second most disastrous experiment is the current floating monetary regime which began in 1971, which lets hope doesn't last 70 years also.
Floating money is like trying to play a game where there is no stable unit of account. The problem isn't the game and its players (Capitalism) the problem is the people making the rules (Government)

Redstone,

That song about let rich people have money and tax the poor for every penny they earn is bull.

Poor spend everything they get. That creates markets which causes people with the means to start or expand a business.

I have NEVER heard any of my friends say "I have this money so i am going to hire me some people."

I hear them say all the time, "I think there is a market for this so I am going to add that to my line or expand into that market or start up a company doing that."

Have you ever heard anyone say I have this extra money so I am going to hire someone? I never have.

But the restaurant that has pretty good business rents the space next door to expand when it comes available because more people can afford to eat lunch there because the middle class is spending most of every bit of income and generating business.

Right now, at this very instant there are loads of money just sitting on the sidelines not because the rich have no money to invest. It is sitting on the sidelines because the rich don't see the opportunity to sell something.

Have you heard the phrase CONSUMER SPENDING IS DOWN is why we are stuck in this situation right now.

Money is sitting on the sidelines becasue there are no consumers consuming. Those of us with money are waiting for consuming to pick up to indicate where we can invest our money and make a profit.

Give a trillion to the upperclass and nothing happens until the masses resume spending.

"THREE days after the world learned that $50 billion may have disappeared in Bernie Madoff's Ponzi scheme, The Times led its front page of Dec. 14 with the revelation of another $50 billion rip-off. This time the vanished loot belonged to American taxpayers. That was our collective contribution to the $117 billion spent (as of mid-2008) on Iraq reconstruction - a sinkhole of corruption, cronyism, incompetence and outright theft that epitomized Bush management at home and abroad." By FRANK RICH

[LINK]

"But wait, there's more: The top 5 percent of income earners get 90 percent of the tax breaks." -Max

But wait, what percent of the tax do the top 5 percent pay? Please don't tell me that the monies would be given back pro rata.......the more you make, the more you pay. The more you pay, the more you get back with a cut. Seems simple, doesn't it?