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Tax our way to prosperity

Discussion in 'The Dungeon' started by sheepofblue, Sep 26, 2018.

  1. sheepofblue

    sheepofblue Well-Known Member

    https://www.cnbc.com/2018/09/26/as-...nd-more-on-interest-than-on-the-military.html

    The article has good information except one left wing falsehood. The tax cuts are to blame. Sorry but tax receipts are UP just not as much as spending. The tax cuts boosted economic activity and raised tax receipts not lowered them. But yes debt is our #2 national problem after the push toward collectivism which would destroy us.
     
  2. GRH

    GRH Well-Known Member

    Your post reminded me of this that I came across the other day

    some serious spending
     
  3. sdiver

    sdiver Well-Known Member

    Debt payments are 7% of tax revenue. In 1995 it was 17%. We are nowhere close to being burdened with debt.

    That article is typical CNBC with a Republican admin..projecting possibilities a decade from now, making them seem urgent, and deflecting from the wonderful position we are in now.
     
    Last edited: Sep 26, 2018
  4. sheepofblue

    sheepofblue Well-Known Member

    I would agree except the current interest rates are abnormally low due to the Fed printing money like it was TP during the Obama years (and other reasons on top of that) It would be quite reasonable to assume a doubling in the rate if the Trump economy continues. Which would push that 7% up without any new borrowing.

    I can see your assessment of bias as it was certainly there. However the debt is real and getting worse. Just think if there was 7% less needed for interest. How much closer to no deficit? Or better how much less income taken from workers?
     
  5. sdiver

    sdiver Well-Known Member

    Interest rates are low because the rest of the World sees US debt as a desirable investment. Like you said, among other things..like increasing the money supply via aggressive Fed policy. But believe it or dont, economists have gotten fairly good at managing all of those factors. Absent some large shock such as the entire banking system almost collapsing due to stupidity or Bernie Sanders, I have faith we will be OK.
     
  6. sheepofblue

    sheepofblue Well-Known Member

    OK sucks I want to rock it.
     

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