Any thoughts on the tax bill?

Using this reasoning, the President and Congress aren't to blame for the deficits since they're primarily due to the downturn in employment and taxable income. One might conversely argue that decreasing revenue channels that are currently budgeted to pay for fixed costs such as debt interest two foreign wars and entitlement expenses is a lack of fiduciary duty. The tax year runs from 1/1-12/31, yet the federal fiscal year runs from 10/1-9/30.

joho wrote:

People seem to forget that the amount collected in taxes does not cause a deficit, it is the amount of spending.

Last year 50% paid no income tax. Most of them paid payroll taxes that funded half the budget (SS/ medicare). There is a huge difference between the two.I am in favor of more people paying income tax but repealing the all bush tax cuts (the rates don't matter as much as things like child credits) isn't going to happen.But heck I love that they extended the tax cuts. Thats 100k more that I get to save.

OldXCguy wrote:

asdfasdfas wrote:

A huge chunk of current deficit is a result of lowered tax revenue. We are collecting less income tax than 10 years ago but we have almost 10% more people to support. That isn't sustainable.

Last year nearly 50% of Americans paid no taxes, so who's supposed to support all those people? I guess we need to get more money from "The Rich."

The SS withholding was good. Understand that middle to upper middle class taxpayers having being getting totally screwed over for years now. They don't get the tax benefits of the super wealthy who have ways to perpetually defer earnings on accumulated wealth into the future. Nor do they have the advantage of Earned Income Credit and other benefits for poor workers.

Somebody earning a wage of $100,000 will now get a $2,000 tax benefit. Under the Making work Pay credit it was maxed out at $400.

Social Security is fine. Its just a question of how its paid, not if it can be paid. If nothing is done than SS benefits will simply be paid out by other types of taxes. I think we should get rid of SS taxes altogether. Have a reasonable VAT tax and and close all the endless loopholes of the federal tax.

Let me repeat "Actually, SS has paid every single penny of every single benefit for over 75 years and is projected to be solvent without change for decades. This is an attempt to worsen it's financial situation as a prelude to taking this away"

If Soc Sec were insolvent, either not all benefits would be paid -- and they are -- or the system would have to borrow money -- and it never has.

More money is paid into SS than goes out -- this has been true every single year for the past 75 and remains true today. That's pretty damn simple, pay as you go, funding and accounting.

Your statement is gibberish.

what did u say? wrote:

Hey, fisky, you quoted the NY Daily News. That's a rag, bro. You need a real source.

.

Yep. What was stated in that article was false

"People seem to forget that the amount collected in taxes does not cause a deficit, it is the amount of spending.'

Think back to first grade math. A deficit is caused when more is spent than taken in. Ergo, the amount of taxes collected is very much a part of the equation. Lower taxes = bigger deficit

I'm upper income and expect a good windfall. I'll invest the windfall in China ETF Funds.

You were doing Algebra in 1st grade? And strictly speaking Lower Taxes = bigger deficit, all else being equal.

CousinB wrote:

"People seem to forget that the amount collected in taxes does not cause a deficit, it is the amount of spending.'

Think back to first grade math. A deficit is caused when more is spent than taken in. Ergo, the amount of taxes collected is very much a part of the equation. Lower taxes = bigger deficit