To Close the Deficit, Federal Income Tax Rates Would Have to Nearly Triple

Tax Foundation ^ | October 22, 2009

[sickoflibs]

The Peter Schiff/Redistribution Watch Ping. (Washington Bankrupting our Nation by Spending your past, present and future money!)

The conventional wisdom both parties is that we can devalue the dollar forever and soon the foreigners can hire us all for free. Wait, is that good??

[BP2]

Does this take into account a declining tax base as Baby Boomers leave the work force?

[Myrddin]

I'm already losing half of everything I earn to taxes. Triple? I'll take a job a Jack in the Box or Walmart instead of one doing software engineering at nearly $150k annually. The thieves in DC don't understand that people won't pull the cart if there is no reward for the work.

[Man50D]

This would be a moot point if Congress passed The Fair Tax Act(H.R.25/S.296) that would replace all federal income taxes with a national sales tax and abolish the IRS. A national sales tax will broaden the tax base by including illegals aliens, foreigners visiting the U.S. and the unemployed who do not pay income taxes. Fair Tax ping!

[denydenydeny]

DON’T GIVE THEM ANY IDEAS!

[tbw2]

How do you have a tax rate OVER 100%?

[Ghost of Philip Marlowe]

I’m sorry, at WHAT percent of unemployment do these numbers work? What if the unemployment doubles beyond their numbers, do they tax those workers with jobs at 6x?

[Leisler]

The other half pay six times.

[Blood of Tyrants]

The liberals have no problem with tripling the tax rate.

[Wolfie]

It is my firm belief that if we had a resonable government...

And if my Aunt had a ****, she'd be my Uncle.

[Blood of Tyrants]

I believe that is what Obama wants to do. He will destroy the economy, make the dollar worthless, destroy the nation and proudly proclaim that he paid off the debt.

[FightThePower!]

This is all by design. As long as there is a Federal Reserve system, we will never, ever not run debts. Both parties run the debt to greater and greater levels.

[Think free or die]

"the high tax rates necessary to balance the budget in the next several years would discourage all income-producing endeavors," Ahern said."

No kidding.

[Uncle Miltie]

"No mention of the Laffer Curve"

Exactly.

The tax rate that generates the greatest revenue to the Treasury has been proved, I think, to be 22% of GDP.

Therefore, since the U.S. has an average of at least 35% of GDP, ANY INCREASE IN TAXES WILL DECREASE REVENUES TO THE TREASURY!!!

The way to get more revenues to "Close the Deficit" is to cut taxes. People will work more, and tax revenues to the Treasury will climb.

Even smart Libs know this. It just doesn't win votes.

[murphE]

It's a MADHOUSE! A MADHOUSE!

[DTogo]

A better idea:

Reduce the size of Fedzilla by 66%

[rabscuttle385]

Reduce the size of Fedzilla by 66%

The best idea: shrink Fedzilla to its Constitutional bounds...so small that it can be readily drowned in a bathtub, if the need should arise.

[DTogo]

...if the need should arise.

The need has arisen!

[Soothesayer9]

“What the Obama administration isn’t telling Americans is that the only practical solution is a giant tax increase aimed squarely at the middle class”

- One doesnt need a Ph.D in economics (or anything else for that matter) to know this. We all knew this was coming. Obama’s insane spending spree will have to be paid back by enormous taxes, which will mean another Depression, or CW. Or, just maybe people will figure out ways to earn a living that do not involves giving 50% of our hard-earned to Pelosi and Co. to blow on their special social projects.

If the citizenry ever finds an anonymous way to earn a living (either on or off the net), then the govt will truly send every thug with a badge their way. And it will be bloody.

[Think free or die]

"The best idea: shrink Fedzilla to its Constitutional bounds...so small that it can be readily drowned in a bathtub, if the need should arise."

That sounds about right. If we could radically shrink the monster, there would be lots of free enterprise opportunities in (privately) replacing those functions of government which have value. Doing away with the massive layers of regulation and control would free up our entrepreneurial spirit and encourage investment in new businesses.

Big question - what would we do with all the excess lawyers - export them?