America is not broke...

Although commodity price increases are not tax increases per se, you do make a very good point because, as many people have noted over the years, currency debasement can act like a "stealth tax" and has even been called the cruelest tax of all.

Bad government policy (too much deficit spending) has more or less forced unprecedentedly accommodative monetary policy (the extension of QE as well as the continuation of ZIRP). Policymakers are obviously worried about inadequate demand for net new Treasury debt issuance and the Fed is expanding its balance sheet and taking down the bulk of new issuance of 7s and 10s with newly-printed money -- to the tune of about $75 billion per month. Originally Posted by CaptainMidnight

I was going to bring up QE2 earlier but passed (I agree with you, but I didn't want to stir the pot). However, commodity price increases do mean consumers are paying more in taxes. State and local governments taxes are based on the amount of the purchase. Consumers are now paying for both the increased price of commodities and a higher level of state and local taxes associated with the higher prices for commodities.

Obama and senate Republicans agreed late last year to cut the employee portion of the payroll tax by two percentage points. That was a quid pro quo for extending the 35% bracket enjoyed by high earners, and it means that even a household of very modest income might pocket an extra $2-3K/year.

On behalf of the Obama administration, Austan Goolsbee recently claimed that these cuts will outweigh increased costs of food, gasoline, etc. imposed on hard-pressed families.

That may be true -- at least for now.

However...

My essential point is that this doesn't even come remotely close to being sustainable policy. We're now spending 25% of GDP at the federal level, and most states have serious fiscal issues as well. Sooner or later, a large tax increase on people who aren't very well off will be necessary. That was baked into the pie some time ago.

Anyone who thinks you can significantly decrease the budget deficit by raising taxes only the affluent is living in a fantasy world.

Anyone who thinks you can significantly decrease the budget deficit by raising taxes only the affluent is living in a fantasy world. Originally Posted by CaptainMidnight

If they confiscated all of the accumulated wealth (not income but wealth) of the Forbes 400 billionaires, it would only cover about 40% of last year's deficit. Then what do you do next year?

America is not broke?

Dave Ramsey had a nice analogy....

Imagine you had household income of $58,000 per year, but spent $75,000 per year plus had $327,000 in credit card debt.....now assume you decided to solve your financial problems by cutting your spending down to $72,000 per year....your problem would be solved, right? Originally Posted by Marshall

As TTH pointed out, your analogy would be more accurate if you added in the aspect that the $58,000 yearly household income is brought in by the wife, but the husband doesn't work. And not because he can't, but because he chooses not to.

In other words, we, as the household, could have the money if we wanted to have it, but we (meaning people like Marshall and several others in here) would rather take the easy way out and not be bothered with it. Leave it for the kids to deal with.

As TTH pointed out, your analogy would be more accurate if you added in the aspect that the $58,000 yearly household income is brought in by the wife, but the husband doesn't work. And not because he can't, but because he chooses not to.

In other words, we, as the household, could have the money if we wanted to have it, but we (meaning people like Marshall and several others in here) would rather take the easy way out and not be bothered with it. Leave it for the kids to deal with. Originally Posted by Doove

Doofus....I asked the moderator to either take care of your harassment, or give me a ban-free pass to handle you myself....I await moderator response....

Doofus....I asked the moderator to either take care of your harassment, or give me a ban-free pass to handle you myself....I await moderator response.... Originally Posted by Marshall

No ban free passes handed out. As I'm sure you know.
I ask you to work things out or try the ignore function. If things progress to rudeness or worse no warnings will be given out as D & T is on it's way back to the friendly and safe community it once was. Some people may not like others but we will get along or else take it somewhere other than here.

Doofus....I asked the moderator to either take care of your harassment, or give me a ban-free pass to handle you myself....I await moderator response.... Originally Posted by Marshall

Marshall, I don't see Doove's response as being harassing. Ignorant and ill informed maybe, but not harassing.

That's actually what passes for friendly banter/discussion around here. He didn't even call you an ignorant slut (at least not on this post).

I didn't either. However I did take the time to go over several threads and there is a pattern of post stalking if you want to call it that. Nothing over the line but many little pebbles......

Marshall, I don't see Doove's response as being harassing. Ignorant and ill informed maybe, but not harassing. Originally Posted by pjorourke

Awww, thanks PJ. I think that's the nicest thing you've ever said about me.

I didn't either. However I did take the time to go over several threads and there is a pattern of post stalking if you want to call it that. Nothing over the line but many little pebbles...... Originally Posted by Marcus Aurelius

You're kidding, right?

First, he's accused me of harassing him since my first response to him. Figure it out. Secondly, i believe he's quoted me as many times as i've quoted him, if not more. Third, that doesn't include posts he's made about me where he quoted someone else. Fourth, he's suggested i'm not only obsessed with a provider, but more than once he's suggested i very well might be a sociopathic murderer. And now he wants you to give him a pass so he can "take care of me". Oh, and he's called me "Doofus". All in a little over 24 hours.

Who the hell is stalking/harassing who here?

but more than once he's suggested i very well might be a sociopathic murderer. Originally Posted by Doove

I only counted once. But in fairness, the reference was to your avatar.

and he's called me "Doofus".

Now that might stick.

I only counted once. Originally Posted by pjorourke

I included his post about my guaranteed conviction. Maybe i overstepped. Maybe not.

But in fairness, the reference was to your avatar.

No, the reference was to me for having chosen this avatar.

For the record, i've invited Marshall to "handle me". Please oh please oh please oh please.

Okay Doofus.

I didn't either. However I did take the time to go over several threads and there is a pattern of post stalking if you want to call it that. Nothing over the line but many little pebbles...... Originally Posted by Marcus Aurelius

Doove? Post stalk? That is hilarious!

Who the hell is stalking/harassing who here? Originally Posted by Doove

I don't know baby but please feel free to stalk me .

I don't baby but please feel free to stalk me . Originally Posted by Naomi4u

Based on what seems to be the new criteria, maybe i already do!

Doove? Post stalk? That is hilarious! Originally Posted by Naomi4u

How is that hilarious?