dagblog - Comments for "OUR COMMON CENTS NEEDS COMMON SENSE!"

There's more on the proposed

artappraiser — Tue, 20 Nov 2012 18:34:12 +0000

In reply to OUR COMMON CENTS NEEDS COMMON SENSE!

There's more on the proposed taxes on upper incomes being negotiated, in today's NYT:

http://www.nytimes.com/2012/11/20/business/economy/tax-talks-raise-bar-f...

FYI: the tax amount of

Aunt Sam — Tue, 20 Nov 2012 03:30:21 +0000

In reply to Thanks AA. I appreciate

FYI:

the tax amount of $250,000 taxable income for a married couple is $59,407

Using the 2000 tax rate schedule before the Bush tax cuts it is $73,409, an increase of $13,642 if the Bush tax cuts are allowed to expire.

I have no firm suggestions

artappraiser — Tue, 20 Nov 2012 03:21:45 +0000

In reply to aa, curious about what you

I have no firm suggestions beyond trying Bill Clinton again first, I'm not so much into that kind of wonkery, it gets too thickedty-wicket for me.

But I must say I was impressed when I checked up on all of Canada's taxes about a year or so ago, how they are actually way lower than us on many Federal counts like income tax and corporation taxes, and government income comes from other taxes--their tax system would be a good place to get inspiration, not so much to copy, but for inspiration. If I recall correctly (warning: maybe not) they like have a much lower corporate tax rate but far fewer deductions/loopholes/whatever are allowed, so they don't end up with some corps paying zero like we do.

Thanks AA. I appreciate

MrSmith1 — Tue, 20 Nov 2012 03:03:41 +0000

In reply to It's the Bill Clinton top tax

Thanks AA. I appreciate your taking the time to explain it to me. It's nice to know there are careful calibrations being done by micro-economists and number crunchers and that the figure wasn't simply arbitrary.

aa, curious about what you

Aunt Sam — Tue, 20 Nov 2012 03:02:46 +0000

In reply to P.S. Everyone should keep in

aa, curious about what you think - IF we taxed all income (including investment, etc.) the same as 'earnings/wages', would you be adverse to keeping the current rate of the wealthiest and not raising it to 39.6%?

P.S. Everyone should keep in

artappraiser — Tue, 20 Nov 2012 02:57:51 +0000

In reply to It's the Bill Clinton top tax

P.S. Everyone should keep in mind that most of the uber-wealthy do not have a lot of earned income. So all much higher income tax rates would do as far as uber-wealthy are concerned is things like signalling corporate boards to lower some CEO salaries and give them more stock options or other benefits

James Kwak @ The Atlantic, Nov 15:

If you really want to raise revenues, the Holy Grail isn't capping tax deductions, as Romney proposed, or raising the top marginal rate, as Obama proposed. It's taxing investment income like ordinary income.

The New York Times did a story for today's print on an evasion effect already happening; it's real and not just with fat cats; it tells of uber-wealthy Steve Wynn's plans, but also that of a chiropractor who is making sure her income for the year does not go over $250K:

Investors Rush to Beat Threat of Higher Taxes
By NATHANIEL POPPER and NELSON D. SCHWARTZ, New York Times Business Day, Nov 18/19, 2012

There's a known depressive effect on economic activity, and from my reading during the Clinton years, I know the percentages of effect with each percentage rise have been studied. The higher you go over that amount, you at very least have to try to make it up with stimulative government spending. (Which doesn't always work out like progressives like: more Defense contracts for more weapons? Good paying jobs, after all!) Spending which counters the whole balancing budget thing and may or may not spur growth, depending on what it is, what it is decided by Congress. (Unless, of course, you are into presuming that Modern Monetary Theory will soon be enacted in running this country's monetary system....)

Your list is a good start! I

Richard Day — Tue, 20 Nov 2012 02:43:14 +0000

In reply to OUR COMMON CENTS NEEDS COMMON SENSE!

Your list is a good start!

I like this!

It's the Bill Clinton top tax

artappraiser — Tue, 20 Nov 2012 02:30:37 +0000

In reply to Okay, this is going to sound

It's the Bill Clinton top tax rate signed into law in 1993, and it was supposedly carefully calibrated by micro economists and other numbers crunchers not to get into problems of diminishing returns, and counterproductive results, via things like tax evasion, suppression of investment, funds and business flowing out of the country, etc. (Not to mention, by his second term, the fact that they kept it at this rate and didn't go higher left a good chunk of well-to-do people thinking Bill Clinton and Democrats knew how to handle the economy better than the Republicans. Politically, there's a lot of benefit to not waging whole hog class war.) It did end up helping balance the budget and by the end of his second term had miraculously made a big dent in the debt. And that's with expanding things like Earned Income Credit, with many in the lowest income levels basically getting refunds of their SS payments or even beyond that, to negative taxation in certain cases.

Okay, this is going to sound

MrSmith1 — Tue, 20 Nov 2012 02:10:28 +0000

In reply to OUR COMMON CENTS NEEDS COMMON SENSE!

Okay, this is going to sound like a stupid question, but I'm going to ask it anyway, because I'd really like to know ...

Why have so many folks settled on the tax rate on the wealthy going up to 39.6 %? I mean, why not 40%? Is it just a psychological thing, like pricing a store item at 19.95 instead of 20 dollars? Or is there a more complicated reason? If it is just a psychological reason, aren't we a bit far down the road to worry about that kind of window dressing?

BOY, Genghis was not

Richard Day — Mon, 19 Nov 2012 23:08:22 +0000

In reply to OUR COMMON CENTS NEEDS COMMON SENSE!

BOY, Genghis was not kidding.

This blog is getting harder and harder. ha

No you still got two blogs going at the same time!

I am about to give up!

I am going to wait an hour and see how the blog works in order to answer properly!

I have my own streaming probs.

I just point this out because it is excruciating.