Use access key #2 to skip to page content.

TMFFlushDraw (81.42)

Thinking Outside The Box On Taxes

Recs

5

December 14, 2010 – Comments (10)

I realize this tax deal has been done but CNN just reported that Moody's thinks it is a bad idea for our debt (makes sense) and I'm wondering how this helps cut the deficit everyone says we want to cut. How could we balance this equation since low taxes = growth + more debt + higher borrowing costs, leading to more deficits. 

Why not make the tax cut dependent on cutting the deficit? Maybe it could go something like this...

2011: Tax cuts stay for everyone as we recover from the recession.

2012, 2013: If the deficit is below 3% of GDP all tax cuts stay. If 3%-5% half of the cuts stay. And if above 5% taxes go up to Clinton levels for everyone.

2014 and beyond: If the deficit is below 1% of GDP all tax cuts stay. If 1%-3% half of the cuts stay. And if above 3% taxes go up to Clinton levels for everyone. 

Talk about an incentive to cut spending...

Can you imagine a congressman campaigning and saying, "I know you don't want your taxes to go up but we just couldn't cut SS, Medicare, Medicaid, Military or any number of discretionary programs enough to get under a 3% deficit".  

Maybe it's just a Foolish idea?

Travis 

10 Comments – Post Your Own

#1) On December 14, 2010 at 3:31 PM, brickcityman (< 20) wrote:

The problem, in my view, with a system like that is it creates powerful incentives to either manage to, or worse yet distort, the metrics.

 

Everyone knows that managing to a single, or small set of, metrics will undoubtedly sway behavior.  This can be a good thing if you are dealing with a simple system.  But a large economy is anything but a simple system.  Measuring it in simple ways is bound to produce undesirable results (such as finding ways to prop up GDP based simply on the way GDP is calculated not that which it is intended to represent).

 

There is also the risk that this could further obfuscate real data by encouraging the body politic (elected and un-elected) to skew results in favor of showing progress.  As things currently stand one hopes that opposing political winds nearly cancel each other out, but under a system like this there would likely be more pressure to "make the quota" than there currently is.  This, I fear, would take us in the wrong direction in terms of transparency and accountability.

 

Personally I think all of this talk misses the point...  We're still fumbling around trying to keep our Edsel of tax system running, when really its time to re-assess our needs and construct a new system aligned to them.

Report this comment
#2) On December 14, 2010 at 4:35 PM, Entrepreneur58 (40.30) wrote:

In Greece they actually pretty much stopped making people pay taxes at all and they just ran the government nearly 100% on borrowed money.  This is the "If you are dumb enough to lend a broke country money, you get what you deserve" kind of mentality that seems to pervade almost every country nowadays.

Report this comment
#3) On December 14, 2010 at 5:52 PM, outoffocus (23.59) wrote:

How about we stop thinking we can debt our way to prosperity?

Report this comment
#4) On December 14, 2010 at 9:32 PM, russiangambit (29.49) wrote:

How about we let people allocate at least a  portion of their taxes? You want a pet project in D.C., lets see how many people out the whole country allocate money for that, the same for Texs, California. Projects that didn't get funded, get canceled.

Let those who think we are oin constant danger allocate to military, and those more social minded to healthcare and so on.

It only makes sense that only people paying into the system get to decide how to spend the money.

Report this comment
#5) On December 15, 2010 at 1:13 PM, TMFFlushDraw (81.42) wrote:

@brickcityman

You're right, that is probably the downfall of my idea. I also agree the tax system needs an overhaul but good luck with that. That's why I'll never run for office. I have too much common sense to understand why things have to work the way they do.  

TMFFlushDraw 

Report this comment
#6) On December 15, 2010 at 8:01 PM, yuzhe123 wrote:

Dear customers, thank you for your support of our company.Here, there's good news to tell you: The company recentlylaunched a number of new fashion items! ! Fashionableand welcome everyone to come buy. If necessary, pleaseinput: 
http://www.kogoal.com
T-shirts (ed hardy,lacoste) $14
New era cap $10
Air jordan(1-24)shoes $30
Handbags(Coach,ed hardy,lv,d&g) $35
Jean(True Religion,ed hardy,coogi) $35
Sunglasses(Oakey,coach,gucci,Armaini)$14
Bikini (Ed hardy,) $18
http://www.kogoal.comfda

Report this comment
#7) On December 15, 2010 at 8:06 PM, yuzhe123 wrote:

Hi,Dear Ladies and Gentlemen, =====http://www.kogoal.com===== Here are the most
popular, most stylish and avant-garde
shoes,hand jacket,Tracksuit w
ect...NIKE ,JORDAN SHOES 1-24,AF,DUNK,SB,PUMA
, $35HANDBGAS(COACH,L V, DG, ED
HARDY) $35TSHIRTS ( ED HARDY, LACOSTE) $16
New to Hong Kong : Winter Dress
--- NHL Jersey Woman $ 30 ---**** NFL Jersey $20--- NBA Jersey $ 18 ---**** MLB Jersey $ 30--- Jordan Six Ring_m $30 ---**** Air Yeezy_m $ 45--- T-Shirt_m $ 15 ---**** Jacket_m $ 30--- Hoody_m $ 30 ---**** Manicure Set $ 20as long as the new and old customers to buy the corresponding product on this site, both a gift, so stay tuned! !http://www.kogoal.com

Report this comment
#8) On December 16, 2010 at 10:57 AM, yusheng123 wrote:

===== http://www.gotootoo.com/ ===== 50of;f ca,ed hardy t-shirt$15 j-e-a-n-s,coach handbag$33,air max90,dunk,t-shirt$13,,lacoste t-shirt $13 air jordan for sale,$35,nfl nba jersy for salepuma gucci$35,nike jordans six ring,yeezy$%5!!new era caps$13 gucci handbags j-e–a-ns,t-shirts sunglass,capstrue religion j-e-a-n-s$35,ca,ed hardy j-e-a-n-s$35LV,CHANAL,HANDBAGS$35NIKE SHOX+AIR MAX+TL3+OZ+NZ ONLY $35UGG TIMBLAND+LACOSTE SHOES+ED HARDY SHOES$35DIESEL T-SHIRT,GSTAR T-SHIRT,CA T-SHIRT,50% OFF FOR SALE $15DIOR SUNGLASS,DG SUNGLASS$15our website: ===== http://www.gotootoo.com/ =====┴┬┴┬/ ̄\_/ ̄\┬┴┬┴▏  ▏▔▔▔\┴┬┴/\ /     ﹨┬┴∕    /   /  )    !                    !┬┴▏         ▔█◤┴◢██◣      \__/┬█████◣      /┴████████████◣◢████████████▆▄◢███████████▆▄█◤◢██◣◥███████◤\◥◢████ ████████◤  \┴█████ ██████◤     ﹨┬│   │█████◤       ▏┴│   │  ▏┬∕   ∕    /▔▔▔\    ∕*∕___/﹨   ∕      \ /\┬┴┬┴┬┴\    \_     ﹨/ ┴┬┴┬┴┬┴ \___\     ﹨/fd

Report this comment
#9) On December 19, 2010 at 8:01 PM, yilian wrote:

Hi,Dear Ladies and Gentlemen, =====http://www.kogoal.com===== Here are the most
popular, most stylish and avant-garde
shoes,hand jacket,Tracksuit w
ect...NIKE ,JORDAN SHOES 1-24,AF,DUNK,SB,PUMA
, $35HANDBGAS(COACH,L V, DG, ED
HARDY) $35TSHIRTS ( ED HARDY, LACOSTE) $16
New to Hong Kong : Winter Dress
--- NHL Jersey Woman $ 30 ---**** NFL Jersey $20--- NBA Jersey $ 18 ---**** MLB Jersey $ 30--- Jordan Six Ring_m $30 ---**** Air Yeezy_m $ 45--- T-Shirt_m $ 15 ---**** Jacket_m $ 30--- Hoody_m $ 30 ---**** Manicure Set $ 20as long as the new and old customers to buy the corresponding product on this site, both a gift, so stay tuned! !http://www.kogoal.com

Report this comment
#10) On December 27, 2010 at 7:38 AM, yuxiaxin wrote:

===== http://www.gotootoo.com/ ===== 50of;f ca,ed hardy t-shirt$15 j-e-a-n-s,coach handbag$33,air max90,dunk,t-shirt$13,,lacoste t-shirt $13 air jordan for sale,$35,nfl nba jersy for salepuma gucci$35,nike jordans six ring,yeezy$%5!!new era caps$13 gucci handbags j-e–a-ns,t-shirts sunglass,capstrue religion j-e-a-n-s$35,ca,ed hardy j-e-a-n-s$35LV,CHANAL,HANDBAGS$35NIKE SHOX+AIR MAX+TL3+OZ+NZ ONLY $35UGG TIMBLAND+LACOSTE SHOES+ED HARDY SHOES$35DIESEL T-SHIRT,GSTAR T-SHIRT,CA T-SHIRT,50% OFF FOR SALE $15DIOR SUNGLASS,DG SUNGLASS$15our website: ===== http://www.gotootoo.com/ =====┴┬┴┬/ ̄\_/ ̄\┬┴┬┴▏  ▏▔▔▔\┴┬┴/\ /     ﹨┬┴∕    /   /  )    !                    !┬┴▏         ▔█◤┴◢██◣      \__/┬█████◣      /┴████████████◣◢████████████▆▄◢███████████▆▄█◤◢██◣◥███████◤\◥◢████ ████████◤  \┴█████ ██████◤     ﹨┬│   │█████◤       ▏┴│   │  ▏┬∕   ∕    /▔▔▔\    ∕*∕___/﹨   ∕      \ /\┬┴┬┴┬┴\    \_     ﹨/ ┴┬┴┬┴┬┴ \___\     ﹨/

Report this comment

Featured Broker Partners


Advertisement