Taxes are unwelcome unless you need the services
Blog: Werner Janssen's blog
March 16, 2010
When Senators address one another, they repeat over and over again, “with all due respect,” and then proceed to disagree, but do it in a more or less civil manner. Well, I say to our anti-tax citizens, with all due respect, every government entity needs to generate income. I’ve noticed that government services that certain citizens desire are listed as necessary. Government services that these same citizens don’t use are listed as waste. Government waste should not be tolerated, but all big organizations are inefficient and by their very size and complexity develop a culture of waste.
With all due respect, I might convert to Republicanism if I really believed that tax reduction was a valid solution for our economic problems. Tax breaks to the wealthy, when implemented, have generally increased the divide between those who have the wealth and those who are being left behind. The trickle-down approach may have worked when our venture capitalists were creating increased jobs within our own borders. It doesn’t work when the wealthy use tax cuts primarily to gain political power or to move their money off-shore for increased financial advantages
Is it really a bad idea to increase taxes on cigarettes, alcohol and soft drinks? All of these items are optional. Smokers in our society increase health care costs for all of us. Cigarette-caused fires greatly increase the cost of fire insurance. Alcohol contributes to death on our highways, increasing the cost for auto and health insurance. Soft drinks, loaded with high fructose sweeteners, contribute to obesity and diabetes, thus increasing health care costs and negatively affecting productivity. We should definitely tax bottled water since it is an unnecessary waste. Tap water is just as pure. Plastic bottles fill our landfills, increasing disposal costs. Those yelling, “No new taxes!” need to realize that allowing us to have the freedom to ruin our health or set buildings on fire or kill fellow citizens by driving under the influence are placing a serious hidden tax on society. If you want financial reforms in our society, let’s start with activities that impose greater costs to society than any tax. Would it really hurt our society to charge those with incomes above $250,000 additional social security tax? At one point in our societal development we took care of one another. Concentrating on our individuality necessitates increasing government involvement to maintain a civil society, thus requiring increased government revenue. With all due respect, when we have no interest in caring for one another, and when we display no willingness to curtail the use of items that destroy our health, we end up needing increased taxes just to pay for our stupidity.
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artmann 1 year, 11 months ago
Taxes are unwelcome unless you need the services
Werner- Read and learn actual facts, it may make you sound less of a loon in a Valley where most people "get it". . The truth is that Mr. Bush's deficits were the product of spending, not tax cuts. In fact, Mr. Obama could learn an important lesson for his own economic plan by studying Mr. Bush's two very different attempts at tax-cutting.
As the Wall Street Journal's Stephen Moore illuminates in his 2008 book "The End of Prosperity" (Threshold Editions), Mr. Bush's 2001 tax cuts failed to revive an economy still staggering from the bursting of the dot-com bubble. Mr. Bush's strategy had been to adopt a demand-side, Keynesian stimulus, hoping that putting a few extra dollars in Americans' pockets would jump-start the economy through increased consumption. This approach faltered, not just because Americans opted to save their rebates, but because it neglected the importance of business investment to overall growth. Predictably, the economy lagged and government revenues stagnated. What the United States needed then (and needs now) was to stimulate investment, not consumption.
By 2003, Mr. Bush grasped this lesson. In that year, he cut the dividend and capital gains rates to 15 percent each, and the economy responded. In two years, stocks rose 20 percent. In three years, $15 trillion of new wealth was created. The U.S. economy added 8 million new jobs from mid-2003 to early 2007, and the median household increased its wealth by $20,000 in real terms.
But the real jolt for tax-cutting opponents was that the 03 Bush tax cuts also generated a massive increase in federal tax receipts. From 2004 to 2007, federal tax revenues increased by $785 billion, the largest four-year increase in American history. According to the Treasury Department, individual and corporate income tax receipts were up 40 percent in the three years following the Bush tax cuts. And (bonus) the rich paid an even higher percentage of the total tax burden than they had at any time in at least the previous 40 years. This was news to theNew York Times, whose astonished editorial board could only describe the gains as a "surprise windfall."
Unfortunately, Mr. Bush allowed Congress to spend away those additional tax revenues. The fact is that the increase in tax revenues that flowed from the '03 tax cuts could have paid for the wars in Afghanistan and Iraq and then some but for rampant discretionary domestic spending.
CognizantPintOfBrew 1 year, 11 months ago
Taxes are unwelcome unless you need the services
ARTMANN, good job, you have a well put together comment that definitely supports your claim that taxes may not be the answer, with some nice supporting facts (I'm assuming they're all true). What I don't get, and this is rampant throughout the WW website, is why you had to slam the author prior to giving your opposing opinion.
I love debate and I love hearing both sides of the argument but why must we sound like name calling 6th graders when we do it?
artmann 1 year, 11 months ago
Taxes are unwelcome unless you need the services
Good question Brewman! I like to add pizzaz to otherwise boring subjects which I know about. Do you ever see profanity? NO!. Are you offended or something???Because if you are don't be. This is just something that is entertainment, so spice it up a little is my main objective with the funny ribbing. See even above I called you "brewman".....big deal. If it offends someone I could care less. The small business owners I am used to consorting with have thicker skin than average people I guess. At one time I worked with Mike Brown, former Microsoft CFO and every other word was the "F" word. AND YES those are facts above!!!
Webfoot 1 year, 11 months ago
Taxes are unwelcome unless you need the services
Artmann--absolutely "spot on"--another silly idea that Mr. "O" has is the hiring of an employee and receive a $5000 tax credit--well, as an employer, I need to have a Project or job for this person to do "prior" to hiring them--so this tax credit is for show rather than stimulating the economy. Give me a tax credit NOW, for each of my existing employees so I can get the work (projects) to expand and hire additional people. In the REAL world, that's the way it works.
artmann 1 year, 10 months ago
Taxes are unwelcome unless you need the services
I totally agree Dennis, I have just talked to a few Big project contractors who are not seeing any stimulus LITERALLY. It means no work and a laying off of people. So how is this credit going to benefit them??? IT WON"T. They need $$$ now in their pockets NOW. I can't wait to see the anti-abuse language for the assinine thing and/or how they are going to police it....I have this sinking feeling only those with big Union shops will benefit in reality
alex39 1 year, 10 months ago
Taxes are unwelcome unless you need the services
"The U.S. economy added 8 million new jobs from mid-2003 to early 2007, and the median household increased its wealth by $20,000 in real terms."
Hmmmm...nice sounding data, but where were those jobs?
Do you count among these the 14,000 jobs IBM added to their payroll? Of course, of that 14,000 new jobs at IBM, 10,000 were for positions in India. But surely you knew that, and those are not counted as part of that number 8 million. Right?
Too, some of those jobs were in military contracts as a direct result of the Iraq and Afghanistan conflicts, think Blackwater for example.
Where were the other jobs?
Are these the folks who went to work in the then exploding Financial markets arena selling mortgages? Or are these the finance sector folks who built a fine derivatives and sub-prime segment in the industry. What was that fine product: Credit Default Swaps?
How many of those 8 million folks remained employed in their respective sectors following the bursting of the bubble in those real estate and finance sector markets?
About that $20,000 "increased its wealth in real terms," how much of that increase (which was really the result of super-inflated real estate prices thanks to all the hyped mortgages) remains today?
Or am I the only chap in the county with an asset position that began falling in mid 2007 and remains below my initial investments...in real terms of course.
And, yes, I enjoyed my 2000 tax rebate; I spent all $37.00, foolish consumer that I am. I figured, What the heck! It's not enough to cover the increase in the cost of my med insurance, so just waste the big bucks.
Any way, just wondering...
artmann 1 year, 10 months ago
Taxes are unwelcome unless you need the services
Where are those jobs??? Probably all gone now. You do know who has been guarding the hen house since 2007 don't you??? When will this economy take off? When we have some real nice BIG TAX CUTS!!! Been proven with Kennedy, Reagan, Clinton, and Bush.
alex39 1 year, 10 months ago
Taxes are unwelcome unless you need the services
Art, I love the metaphor: "...guarding the hen house..." Of course its non sequitur to say the least, but it's a wonderfully glib comment.
Oh, and if the Hen House is the Congress (ie the place where the eggs of law are laid), then...the guardian of that house from 1995 till 2007 was...ready? The GOP. Remember?
And Not only did they have the hen house from 2000 till 2007, they also had the main gate house and the Manor home of State, during which time, 'off-shoring (permit me the functional shift here and the awkward word) which had begun in the early 60's was the USA's corporate game plan. Take the tax breaks, then off-shore the jobs to further reduce costs, and just like magic, the bottom line is twice as nice as if you'd increased market share and had modest revenue increases therefrom. Shareholders are happy, and the CEO's bonus is safe.
Sorry,Art, but the mess wasn't caused by Obama; however, neither was it caused by GWB.
I blame a congress that has been on the payroll of Corporate America for decades via the lobby dollars.
artmann 1 year, 10 months ago
Taxes are unwelcome unless you need the services
I totally agree Alex, I blame Obama for what he hasn't done and what he wants to do, It scares the holy heck out of small business people and they are the lifeline of this country. But, you can see the facts above on Bush. Tax cuts were very effective. Obama and his Admin are all over the shipping jobs overseas, research his Economic Advisor Valerie Jarrett. She is as wacked a Liberal as there gets. The only time I can remember a decent Congress is when Newt had his contract with America. Outside of that period they have been direlects at best.
commonsense 1 year, 10 months ago
Taxes are unwelcome unless you need the services
I think that 30-39 million immigrants living here, both legal and illegal have had a huge impact in the available jobs for citizens. . Just my thoughts.
KariLynn 1 year, 10 months ago
Taxes are unwelcome unless you need the services
Mr. Bush created a lot of new wealth. For the top 1% of the population. Everyone else got to eat cake. Yippeee!
artmann 1 year, 10 months ago
Taxes are unwelcome unless you need the services
Kay- Your post and your thinking is an oxymoron. Which is it??? Did Bush create a lot of new wealth or did he create wealth for only the top 1%??? As you can see from the facts above. The economy boomed, the tax coffers had a huge explosion of tax revenue and the wealthy paid the biggest share ever. So what about it didn't you like, or do you just resent the wealthy??? Do you think the wealthy getting more wealthly doesn't create jobs??? Use some common sense and quit buying off on all the mainstream media liberal BS.
Norm 1 year, 10 months ago
Taxes are unwelcome unless you need the services
"ARTMANN, good job, you have a well put together comment " . If you're thinking he wrote it himself, you're mistaken. He plagiarized it from here: http://www.washingtontimes.com/news/2010/feb/03/bush-tax-cuts-boosted-federal-revenue/?feat=article_top10_shared . And it's refuted here: http://www.cbpp.org/cms/?fa=view&id;=692 Here's an excerpt of the part that specifically addresses Mr. Dwyer's claim of increased revenues as a result of the tax cuts: "Measured as a share of the economy, revenues in 2004 were at their lowest level since 1959. Given this historically low starting point, it is not surprising that revenues have recovered since then. Supporters of the tax cuts selectively cite revenue growth over just the past three years to argue that the tax cuts fueled increases in revenues." . Regarding capital gains cuts in particular, it says: " After reviewing numerous studies of how investors respond to capital gains tax cuts, the Congressional Budget Office concluded that “the best estimates of taxpayers’ response to changes in the capital gains rate do not suggest a large revenue increase from additional realizations of capital gains — and certainly not an increase large enough to offset the losses from a lower rate.” That’s why CBO, the Joint Committee on Taxation, and the White House Office of Management and Budget all project that making the 2003 capital gains tax cut permanent would cost about $100 billion over the next ten years. (http://www.cbpp.org/policy-points4-18-08.htm)" . Note the date there: 2008. So that's Pres. Bush's OMB cited there, not Obama's. . "why must we sound like name calling 6th graders when we do it?" . Excellent question, which also contains its own answer. People who act like 6th graders are about as mature as 6th graders; they rely on name-calling to cover their own insecurity and inability to intelligently debate the substance of the issue at hand.
1 year, 10 months ago
Taxes are unwelcome unless you need the services
The problem with the country today is that some people(I'd hate to say all but there's a lot) are more concerned with their money and programs that will take care of the them then anything else.I hate to break it to you but its not the governments or the tax payer's job to take care of you.
Get rid of all the welfare leeches abusing these programs and the non-citizens bankrupting the health care system.If they can't pay send a bill to their home country and make them pay.Get rid of all these worthless stimulus plans and projects that do nothing to create any significant number of jobs.All of this would solve a load of debt.
artmann 1 year, 10 months ago
Taxes are unwelcome unless you need the services
Here are the numbers from the CBO. And they don't lie like your Liberal Millard Fillmore blogs. This is the total tax revenues by year. This is called SUCCESS!!! When you enact tax cuts and bring the numbers back up like below you have done something very right...
2000 2,025.5
2001 1,991.4
2002 1,853.4
2003 1,782.5 2004 1,880.3
2005 2,153.9
2006 2,407.3
2007 2,568.2
artmann 1 year, 10 months ago
Taxes are unwelcome unless you need the services
This is from Heritage.org They actually use facts... . Myth #9: The Bush tax cuts have not helped the economy. Fact: The economy responded strongly to the 2003 tax cuts.
The 2003 tax cuts lowered income, capital gains, and dividend tax rates. These policies were designed to increase market incentives to work, save, and invest, thus creating jobs and increasing economic growth. An analysis of the six quarters before and after the 2003 tax cuts (a short enough time frame to exclude the 2001 recession) shows that this is exactly what happened (see Table 3):
GDP grew at an annual rate of just 1.7 percent in the six quarters before the 2003 tax cuts. In the six quarters following the tax cuts, the growth rate was 4.1 percent.
Non-residential fixed investment declined for 13 consecutive quarters before the 2003 tax cuts. Since then, it has expanded for 13 consecutive quarters. The S&P; 500 dropped 18 percent in the six quarters before the 2003 tax cuts but increased by 32 percent over the next six quarters. Dividend payouts increased as well. The economy lost 267,000 jobs in the six quarters before the 2003 tax cuts. In the next six quarters, it added 307,000 jobs, followed by 5 million jobs in the next seven quarters. The economy lost 267,000 jobs in the six quarters before the 2003 tax cuts. In the next six quarters, it added 307,000 jobs, followed by 5 million jobs in the next seven quarters.[16] Critics contend that the economy was already recovering and that this strong expansion would have occurred even without the tax cuts. While some growth was naturally occurring, critics do not explain why such a sudden and dramatic turnaround began at the exact moment that these pro-growth policies were enacted. They do not explain why business investment, the stock market, and job numbers suddenly turned around in spring 2003. It is no coincidence that the expansion was powered by strong investment growth, exactly as the tax cuts intended.
The 2003 tax cuts succeeded because of the supply-side policies that critics most oppose: cuts in marginal income tax rates and tax cuts on capital gains and dividends. The 2001 tax cuts that were based more on demand-side tax rebates and redistribution did not significantly increase economic growth. . I don't think Obama has figured out the Last sentence above... . http://www.heritage.org/Research/Reports/2007/01/Ten-Myths-About-the-Bush-Tax-Cuts .
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