Tax breaks for top 1% stimulates economy??? Pffffft.

hopefully, it never comes to that, but if it does this boy will survive it.

 

Under the 1997 tax bill that Clinton signed which lowered capital gains taxes from 28% to 20% and added the child tax credit plus established higher limits on tax exclusions for IRA's and estates. What followed was a drastic reduction in deficit through incresed treasury receipts. Link http://www.heritage.org/research/re...-the-clinton-tax-hike-produced-the-1990s-boom

Drop the taxes get the engine turning.

 

Okay back for one small post...

Who ever is quoting Warren Buffet you are very misinformed to his strategy - one of my family members used to meet with him once a year. He has his public agenda then he has his tax strategists and lawyers.

Buffet is only trying to support one of his other boys - Obama.

You are playing into his hand... He wants you to go out and support his companies - I wouldn't be surprised if you were leasing office furniture or eating some See's Candies right now.

And his boy Gates is another one that you could place on the list too. Instead of bringing cash to the US (which they have more than God - OUTSIDE OF THE US!!!) Microsoft will be borrowing money to pay their dividends.

Just be careful who's puppet you want to be.

Jus' Sayin'

When I want advice on how to drive a truck through a city, I will look you up. But for financial and investment and the support of my loved ones, I will stick to other sources.

 

But you see it doesn't. The taxes have been lowered since 2001 and 2003 and what has happened.... nothing.. if not going backward. If the arguement is that lower taxes spurs growth, that indeed is not true with the present tax cuts.

 

I'd either stay with driving that truck or start studying economics instead of pontificating on economic issues. Look to the housing market. Look to making a government mandate to lend to those that have marginal credit. The credit rating system is actually a very good one - not the one that had to change it's methods to deal with politicians that were placating their constituents.

The FICO score - it is a measure of how close someone is to bankruptcy - is actually a very good indicator if you are going to be repaid. The melt down has nothing to do with taxes. Socialist agendas have everything to do with taxes. And thinking everyone will repay their debts regardless of FICO is just insane.

 

Thanks for your wonderful insight but I have taken economics and have been NASD licensed to sell securites, life Insuarance, commodities, etc. So I think I have a pretty good crasp on financial discussions. Thanks. Not talking about the housing market, it's taxes that are at discussion. Yeah, taxes are bad. Pay your part to live in the greatest country in the world. The meltdown occured under a "fiscal conservative" that lowered taxes and started a huge uncontrollable deficit that we are trying to get out of now. Lowering the taxes has done nothing except make the rich, richer and the country poorer.

 

There is an easy way to solve this, you just have to surrender. Join Canada and no more worries just hunt and fish and enjoy the life, we will take 40% of your income and provide all you need, pensions, healthcare and the like.

Resistance is futile, you will be assimilated.

 

All due respect, selling 'products' is much different than understanding economics. I don't want to bore you with my qualifications and experience regarding this topic.

To put a connection that we will be a better place if we can just raise taxes is a bit short sited. And to connect tax rate with what transpired in the last couple of years... and then grabbing the early 2000's and attempting to make a connection to taxes.... well it is economically unfounded as much as 'some people' would like to make a connection.

And you are right about the greatest country on the earth - but that is from the diversification of all of our people and the risks that people will take if motivated to do so. Don't confuse this with higher tax rated.

Thank you.

 

I don't agree with this whole connect the dots between how the economy and markets perform with JUST taxes. I too am securities licensed, insurance licensed, and received my degree in Economics. There are many contributing factors to why we are in the most recent mess. My belief is the largest factor is bad home loans, trying to force home ownership percentage up above what it has naturally been in the past. The government was trying to force the issue. People want to blame the banks, or blame Wall Street (of course Wall Street is going to always try to capitalize and maximize the hand they are dealt) but it was the government that wanted home ownership to increase, therefore forcing banks to lend money people they otherwise would not have lended to. There was so much corruption going on with Freddi Mac and Fannie Mae. Once these started defaulting, it just created a huge domino effect from plummeting home values to the securities that held these mortgage backed securities also plummeting. It didn't have anything to do with taxes.

However that being said, it does not make sense to raise ANYONE's taxes during a period of recession or economic uncertainty. At bare minimum, wait a couple of years before letting the tax cuts expire. Even many Dems are starting to realize this.

 

All due respect, you don't know what goes into being licensed then. It not just knowing selling, which is why I don't do that anymore, it's the information you have to know even to pass the exams is highly weighted in economics and taxes. I'm sure you have your own qualifications that make you a good debater on this subject, but don't sit there and attack me saying I don't know what I'm talking about, I have not made a attack of any kind. I understand there are different philosophies to taxes and such, but don't attack me. We can disagree without being rude.

 

So what happened then in the 90's? We had unprecedented growth and deficit reduction. The comm sector was booming. Industry utilization was at 82.5%. The numbers are there to see. Factories were at capacity.

Today is different climate altogether.
I beleive in part there is a fear amongst investors, business owners, bondholders and people in general right now. So why not dangle a carrot out there? At this point what will it hurt? Were already bankrupt, technically. The auto bondholders were fucked when the goverment takeover happened. I'm sure they will tell new GM to fly a kite upon the IPO.

At this point it has to do with trust. Not much trust out there and business owners and investors alike need something to trust in. Until then the money is under the mattress.

 

$1.99 plus TAX

 

Good one! That tax will go to pay probably part of a police officer's salary or help fix a stop light. The benefit goes back into the community.

 

Great discussion, I enjoying reading both sides of the discussion. But I have a question.

Lets say corporate profits return to pre-recession levels (may have already) and the Bush tax cuts are atleast extended, at what point do these corporate entities begin to again re-hire and invest the wealth back into the economy? Do they invest overseas where their return will be greater (afterall corporations exist to make money)? Or will they invest in our country bringing some of the global wealth back home, maybe sacrifice some profits for the good of presumably the country they love?

I don't pretend to be well verse in any of this but I would like to read your responses as ridiculous as these questions may be.

 

I would just like to thank everybody for their input and would also like to say I have the utmost respect for all the opinions on this thread. Thanks to the mods for tolerating.

At the end of the day, most people (peasants, kings, and those of us in-between) want the same things. There isn't a person on here I wouldn't help out, talk with, or stick up for if they needed it. This sort of debate is why I dig this melting pot we call America.....it's stayed civilized (for the most part ) and I've learned plenty.

Everyone's beliefs are subject to their life's experiences. If it was possible to elect a 100% democratic or republican government, this would solve itself. In the end, we would all see that they're all wrong, IMO. That's the problem with this two-party, polarized system we call a democracy.

Another debate, another day. I've got a couple of Redline hood struts to install, boys and girls. Time to go to garage therapy!

Thanks again peeps. Keep it coming.