So I love watching the news, but its getting to the point where I can barely stand to hear people discuss the budget anymore~ mostly because of what conservatives (and some others) are trying to do to the budget and social infrastructure in this country. The level of intellectual malfeasance is astounding~ almost criminal, if you ask me. My problem is this; Yes, the national budget is what will be considered unsustainable (from what I've seen) if current trends continue and nothing is done; there are some spending cuts that need to be made for the long term to work. We have all seen discussions about that on tv~ and yet, EVERYONE refuses to address the issue that extending the Bush Tax Cuts essentially costs everyone (because it is our money and we who benefit) 3.7 trillion dollars over the next ten years. YES, let us cut heating assistance, eliminate public broadcasting, and cut in half job training! but lets not resolve the issue that revenue is down. Its like sitting in a sinking boat and only trying to get the water out, not stop it from coming in~ there are TWO problems here, not one! AAAHHHH! why are people so malleable and stupid????????
pic related~ its one of my favorites
What chaps my ass about politicians is that so many of them are dumb as fucking dirt and have no desire to educate themselves in those things essential to effective governance - like maybe history. A study of the economic history of the US since the advent of the income tax reveals that the "trickle down" idea not only doesn't work but, in fact, has the exact opposite effect of what is advertized.
Without exception, history shows that when the highest marginal tax rate on the wealthy is lowered the economy experiences stagnation, recession or depression, OTOH, when the rate is increased a period of prosperity ensues that benefits all economic classes.
This is not due solely to the increased government revenue but, more important, how money moves through the society.
When the tax is low the penalty for profit taking is low and earnings are withdrawn and diverted into the speculative markets – stocks, bonds, commodities, housing and the like. This in turn creates over heated markets and artificial valuations of the target investments which produces unsustainable bubbles and ultimate crashes.
When the rate is raised the penalty for profit taking is high so earnings are directed into tax sheltered avenues such as new equipment and facilities, R & D, new product development, increased hiring and increased worker benefits all of which builds wealth, stability and a loyal work force.
The current marginal tax rate is the lowest it has been since the crash of 1929.