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Need to vent...

Discussion in 'Uncategorized Threads' started by Utahx5, May 9, 2007.

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  1. Utahx5

    Utahx5 TS Member

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    April Revenue Shower
    May 9, 2007; Page A16
    Here's the "surge" you aren't reading about: the continuing flood of tax revenue into the federal Treasury. Tax receipts for April were $70 billion above the same month in 2006, and April 24 marked the single biggest day of tax collections in U.S. history, at $48.7 billion, according to the latest Treasury report.

    The April comparison is slightly askew because the IRS processed more returns than usual this year. But there's no denying that Americans are sending more money than ever to Washington; revenues for the first seven months of fiscal 2007 are up 11.3%, or $153 billion. This Beltway bonanza has helped to slash the projected federal budget deficit by more than half from the same point last year. Across the past three Aprils, federal red ink has sunk by nearly $300 billion. The deficit this year could tumble to $150 billion, or an economically trivial 1% of GDP.

    This revenue boom certainly casts doubt on the political wails about tax loopholes for the rich. So far this year, the taxes paid on so-called nonwithheld income, which are dollars that don't come from normal wages and salaries, have climbed by nearly 30%. This is income largely derived from capital gains, dividends and other investment sources -- i.e., the tax rates that President Bush cut in 2003. Individual income taxes are also up by 17.5% -- a handsome fiscal dividend from rising wages and low unemployment.

    In other good news, the pace of federal spending, which was pedal-to-the-metal in Mr. Bush's first term, has finally decelerated. So far this year federal outlays have climbed by 3%, and, save for Medicare and Medicaid, federal expenditures are nearly flat from 2006. Spending will climb again once the Iraq supplemental passes, and revenues can't keep rising at a double digit pace forever.

    Still, you'd think this dramatic fiscal turnaround would cheer up Capitol Hill. Instead, Congressional Democrats seem to live in a parallel universe -- one that they claim is starved for revenues, with a runaway deficit, and is dominated by the rich who pay no taxes at all. The reality is that the wealthy are financing Democratic spending ambitions, and the deficit could easily vanish within a year or two if Congress has the good sense to leave current tax policy in place.
     
  2. Rico46

    Rico46 TS Member

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    Utah, you are absolutely correct! The actual tax rates are down and the tax coffers are more full than in history! The fact is tax breaks "stimulate" the economy and help it grow. It's such a simple formula. Now "not" ever sector has returned but I think we will see a mild increase in mfg and once interest rates return to normal we will see a boom in housing starts.

    Democrats loathe this success but have little to say about the state of the economy and the stock market. All they talk about is tax breaks for the rich. The fact is the true rich 1% in this country pay directly or indirectly nearly 70% of the taxes. The bottom 15% pay nearly nothing so the middle class picks up the additional 30%, which seem to make sense! If this democratically held congress could control its spending we could pay off a signifcant % of the debt. But, alas like all the ocngresses over the last 40 yrs they just can't seem to help themselves out of our pockets!

    I would like members of congress to focus on gasoline prices, standardize fuel blend program and provide tax incentives for businessman willing to build new refineries. This would streamline the process and drive down fuel costs. How is it the price of gas in November during congressional elections drops to $2.05 nation-wide and then once the elections are concluded the price continues to skyrocket?

    Rick
     
  3. Big Heap

    Big Heap TS Member

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    Newt Gingrich points to these facts and at the end of September, hopefully, he will announce his candidacy for GOP nominee for POTUS.
     
  4. Finprof

    Finprof TS Member

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    Since two folks brought up the subject of "tax loopholes for the rich" cited by polititians, I would like to know what they are, since I keep hearing about them. I can give you a litany of tax breaks that are no longer available to the moderately affluent (as well as the rich) - for example, no Roth IRA for incomes over $115K; no college tuition deduction for incomes over 108K; reduction in itemized deductions and exemptions for incomes over 110K. I can't find anything in the Code for deductions and exemptions that apply only to those with incomes over $1 million, but lots that DON'T apply to those making over $100k or so.

    Rant over
     
  5. Uncle Sam

    Uncle Sam Member

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    Utah.......Thank-you for this thread ! Some descent info on a subject I hear politicians blabbing about all the time. Over the years it has seemed like I paid most of those totals myself !!.........Uncle Sam, Pa.
     
  6. Rico46

    Rico46 TS Member

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    Reality, is that the top 1% pay 70% of the entire taxes be it in personal income tax, corporate taxes, estate taxes etc. Lets not forget the rich in most cases are the people who employee workers and make a payrolls, pay payroll taxes, pay health insurance benefits, life insurance options, workers compensation insurance, unemployment insurance etc. Outside that they get to deal with frivilous law suits i.e. class action suits, employment practices law suits, personal injury suits etc. On top of that they get to deal with the lazy, lame and useless. And finally for all their hard work the U.S. Government, State, County and City tax them for working hard and being successful. It's pretty easy to see why many major corporations simply take their companies overseas so they don't have to deal with all the bullshit. Reality!

    Rick
     
  7. timb99

    timb99 Well-Known Member

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    More on the subject from Business Week magazine.
     
  8. Setterman

    Setterman Well-Known Member

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    Why in the world isn't George and the Repub's bringing this light on the news, or a press conference, Meet the press, etc,. This could really help the campaign issue in 08', yet we see virtually nothing of this situation on the nightly news. Selective journalism again?

    Some one should kick the Repub. party leaders in the butt, and do some positive press!
     
  9. ANTRIM UDF

    ANTRIM UDF TS Member

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    Remember the Tax Surplus at the end of Clinton`s time? Feeding frenzy of the Hogs put us back in deep debt in a hurry.
     
  10. phirel

    phirel TS Member

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    I have become very disappointed with the Republican party because of what appears to me to be very excessive Government growth and spending. But, I still do not know any other party to vote for. Libertarians seem to be about 85% correct but on the remaining 15% they are really wrong.

    Pat Ireland
     
  11. gbatch

    gbatch TS Member

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    ANTRIM UDF
    I have to be careful here, but your wording is incorrect. I don't fault you for it, but the way things are reported and discussed it's difficult to get it correct. First some basics, and please forget that the government doesn't follow standard accounting practices.

    1. The budget is an annual amount of dollars the government plans to spend. A budget surplus or budget deficit is a result of either too little spending against the budget or too much.

    2. The national debt is the amount of dollars we, the taxpayers, owe to everyone from foreign countries to ourselves and our relatives beyond a 12 month time frame. It could be compared to long term debt on a balance sheet.

    That said, when you say "Remember the Tax Surplus at the end of Clinton`s time? Feeding frenzy of the Hogs put us back in deep debt in a hurry." It is not accurate to say this. There was no tax surplus; there was a budget surplus for a few months due to some accounting tricks the then administration pulled. Truth is, the government was always in debt (as in the national debt) and so, although spending has been out of control, it's also inaccurate to say that we are now back in debt. We've always been there. Right now, it's a little deeper than before.

    With larger tax revenues, as discussed in the first part of the thread, might be able to get the budget into balance and also pay down some of the national debt. That said, with the Democrats in control and a weak President, the chances of those things happening are slim.

    Gene Batchelar
    Wheaton, IL
     
  12. Easystreet

    Easystreet Well-Known Member

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    Rico46 wrote: "and once interest rates return to normal we will see a boom in housing starts."


    How do you define "normal"? Although mortgage interest rates are slightly higher now than they were a year or so ago, they are still WAY below where they have been for most of the past 30 years. I would estimate that the "normal" (mean) average mortgage rate for single family housing over the past 30 years is around 8.5%. Therefore, today's interest rates would have to INCREASE by about 2.5 to 3.0 percentage points in order to return to "normal".
     
  13. Rico46

    Rico46 TS Member

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    Easystreet,

    That is a great point! The economy is still expanding even when housing starts are stagnant. Maybe the buyers are simply waiting for the excess liquidity in the banks and mortgage companies to reside so we can see a drop in rates as they were 4 to 5 yrs ago. I'm fairly comfortable with the market as its growing now. Like anything else in the U.S. economy its cyclical. We will see a resurgence in housing growth shortly which once again will stimulate the GDP.

    Tax cuts works! Even with a war going on and a stagnant housing market the economy is booming along! No suprise rhetoric from the left..I'm sure they are gritting their teeth looking for another avenue!

    Rick
     
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