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To: 101voodoo
What do you suppose would be the result of all governments everywhere (that matter) freezing spending at current levels for say 10 years?

What would be the result of an individual who was spending twice what he makes in a year freezing spending at current levels for say 10 years? Promising to be no worse of a profligate than you are now will not cure anything.
76 posted on 11/08/2010 5:24:50 AM PST by Yet_Again
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To: Yet_Again

Buy a fulfilled promise to NOT increase spending and thereby the deficit, the markets and consumers would react favorably and spending would increase, tax revenues would increase and gov borrowing would decrease, all leading to a deficit reduction.

As profits increased employees salaries would increase (not gov’t employees, however)and this would increase the taxes paid by both the consumer and the company. This is not an increase in the rates just an increase of what is paid under that rate. Also since anyone with even the most basic knowledge of economics knows, businesses pay ZERO taxes since the cost of the tax is built into the price they charge for their product. Therefore Corporate and other business related taxes should be heavily cut which would cause prices to drop as the companies vie with each other to gain market share through lower prices.


77 posted on 11/08/2010 6:21:02 AM PST by 101voodoo
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