Are you ready for your taxes to go up?

[rkstocke5609]

So, how do you explain the incredible growth with the relaxation of regulations? If anything we saw how too much regulation stifled the economy previously. I just don’t get how and why some people spend so much time focused on why things aren’t fair. Life isn’t fair. Momma told me. Go out there, work hard get the most out of life you can. Enjoy it. Eventually get sick and pass on. It’s life. You aren’t entitled to any guarantees no matter what some slippery politician on either side tells you.

 

[NYCgrrl]

So, how do you explain the incredible growth with the relaxation of regulations? If anything we saw how too much regulation stifled the economy previously. I just don’t get how and why some people spend so much time focused on why things aren’t fair. Life isn’t fair. Momma told me. Go out there, work hard get the most out of life you can. Enjoy it. Eventually get sick and pass on. It’s life. You aren’t entitled to any guarantees no matter what some slippery politician on either side tells you.

Could you give some examples of the incredible growth you've noted? Just want to make sure we're discussing the same things.

 

[BuckeyeBama]

I just don’t get how and why some people spend so much time focused on why things aren’t fair. Life isn’t fair.

That is the most tired excuse to take advantage of others in the world. Might makes right, and the weak are just fodder. This kind of thinking eventually leads to revolution. We really don't want to see that in America, because our military and their families are among those living in poverty.

 

[BuckeyeBama]

So capitalism fails if some are compensated far more than others?

First, there are many forms of government which allow for private ownership of property and business.

American capitalism has failed because the wealthy control the government. This means that they have the ability to create laws which protect them and allow them to continue to accumulate wealth at the expense of the masses.

Capitalism can only succeed when it is regulated, to keep greed in check. Lack of regulation ALWAYS leads to what we have today in America.

 

[RamblingMad]

First, there are many forms of government which allow for private ownership of property and business.

American capitalism has failed because the wealthy control the government. This means that they have the ability to create laws which protect them and allow them to continue to accumulate wealth at the expense of the masses.

Capitalism can only succeed when it is regulated, to keep greed in check. Lack of regulation ALWAYS leads to what we have today in America.

it doesn’t matter if capitalism works or not for everyone. What matters is what are you going to do when the tax bill comes for all of this stimulus.

 

[BuckeyeBama]

it doesn’t matter if capitalism works or not for everyone. What matters is what are you going to do when the tax bill comes for all of this stimulus.

Pay more in taxes. I'm okay with that.

 

[mom2rtk]

Pay more in taxes. I'm okay with that.

And when that's not enough?

 

[BuckeyeBama]

And when that's not enough?

Cross that bridge.

 

[starry_solo]

Not really, but I'll start getting prepared for it

 

[OneOftheB's]

The worst part of the probable increase in tax rates is that the small business owners, who have been hard hit by the current shelter in place orders, will bear the brunt of it, not the lowest income earners not the billionaires. Truly wealthy people have their wealth sheltered in such a way that it is not taxed as income; the lowest wage earners typically get back more tax money than they pay; it's the middle class, where most small business owners reside, that gets hit. That increase in tax causes one thing which will continue to hurt our economy: if you know you will have a big tax bill, you don't invest or expand your business, so no new equipment, no expansion, no new employees and you also don't give bonuses or make a large personal purchase. Instead of an income based tax, I would love for us to move to a fair tax where everyone is given a cost of living stipend, but purchases are taxed. That way you get the millionaires, billionaires and the people who are working in an under the table economy, but those subsisting on minimum wage earnings are guaranteed at least their basic needs being met monthly.

 

[BuckeyeBama]

The worst part of the probable increase in tax rates is that the small business owners, who have been hard hit by the current shelter in place orders, will bear the brunt of it, not the lowest income earners not the billionaires. Truly wealthy people have their wealth sheltered in such a way that it is not taxed as income; the lowest wage earners typically get back more tax money than they pay; it's the middle class, where most small business owners reside, that gets hit. That increase in tax causes one thing which will continue to hurt our economy: if you know you will have a big tax bill, you don't invest or expand your business, so no new equipment, no expansion, no new employees and you also don't give bonuses or make a large personal purchase. Instead of an income based tax, I would love for us to move to a fair tax where everyone is given a cost of living stipend, but purchases are taxed. That way you get the millionaires, billionaires and the people who are working in an under the table economy, but those subsisting on minimum wage earnings are guaranteed at least their basic needs being met monthly.

Yep - tax every dollar when spent, on anything. That eliminates tax shelters. But it only works if everyone, including business and corporations, pay the same rate.

Bump up the minimum wage to a livable wage and you now have essentially eliminated poverty.

 

[mom2rtk]

Yep - tax every dollar when spent, on anything. That eliminates tax shelters. But it only works if everyone, including business and corporations, pay the same rate.

Bump up the minimum wage to a livable wage and you now have essentially eliminated poverty.

You should probably run for office or something.

 

[Hikergirl]

First, there are many forms of government which allow for private ownership of property and business.

American capitalism has failed because the wealthy control the government. This means that they have the ability to create laws which protect them and allow them to continue to accumulate wealth at the expense of the masses.

Capitalism can only succeed when it is regulated, to keep greed in check. Lack of regulation ALWAYS leads to what we have today in America.

Well I do agree that there has to be some regulations in corporate business, and there certainly are.
We probably disagree with exactly what and how much regulation is needed and since that will delve too far into politics I'm bowing out. I'm already skating on thin ice with points this month.

As far as the wealthy controlling the government, when you and me stop voting them in things will change. As long as we have representatives and senators and politicians who are worth millions in those offices, on both sides, nothing will change. I mean some of them have been in office for decades getting richer while us citizens get poorer right

 

[BuckeyeBama]

You should probably run for office or something.

I have integrity, so am automatically disqualified.

 

[mrodgers]

Don't worry the little guy will be OK along with the billionaires, it will be us in the middle class that foot the bill.

No, it's the just under middle class, or the ones actually in the middle, that will get hit the worse. We have the taxes of rich middle class and near income of the lower class. At least the middle class has the extra income to cover. Us working class folk will have to sell stuff for the extra tax.

 

[L&Lfan]

I live in NJ. I’m used to high taxes.

 

[cobright]

I wonder what we'll do when we run out of "other people's money"?

First we have to look at where all that "other people's money" came from. Every rich person's bank is filled with money that required a growing economy and a thriving consumer base and labor market.
During the debate on creating a progressive tax structure, back in the 1920s, the owner if a chain of grocery stores voiced his approval saying, "I have no problem giving half my profits back to the community, I got all of it from the community. "

So, how do you explain the incredible growth with the relaxation of regulations?

Two aspects to this... incredible growth is a subjective term. Something we get during industrial revolutions and following world wars.

But regarding growth resulting from relaxing regulations, it's just as important to look at to whom the benefit of that growth accrues. Does reducing regulation benefit society as a whole equally? Does it impose financial risks equally? S&L regulations were gutted in the 80s and 90s, bank liquidity requirements were gutted prior to the 2008 financial crisis.

Getting economic growth by relaxing regulations can be a good thing, but taken to far can leave us with a less stable economy.

And when that's not enough?

We sell treasury securities to pay for it in the near term and pay it back over time.

 

[NYCgrrl]

I live in NJ. I’m used to high taxes.

I live in NYC. I'm used to even higher taxes .

 

[mrodgers]

Unfortunatly , capitalism is a failure in the US. We all talk about how a person must make their own way in the world, succeed or fail based on their own merits. Some even say we should not help out individuals whom are struggling.

Yet every time we have a crisis, the first thing the governments does is bail out business. Often the business that have been fleecing their public for a long time.

When we try to help out the citizens , you often hear nothing but blowback.

oh , and the notion that helping business helps the people by saving jobs is bunk....

That sounds like a government and societal problem, not a Capitalism problem. Corporate bailout by the government is not Capitalism, nor is helping out the citizens.

 

[cabanafrau]

Or a one time 75% tax on retirement accounts.

Just joking.

And at the same time trying to think outside the box!

At the moment US retirement accounts are estimated to be worth about 29 trillion. Would only need a 10% tax to pay off the CARES act and the second act they are talking about now.

You may be joking, but this situation may hasten what's been gradually moving towards ripening for a long time. We're now reaching the point where the first large wave of people who are approaching retirement without traditional employer provided pensions are approaching retirement that will be largely funded via 401k retirement plans. It's only been a matter of time for the taxman to reach out and take an overly generous first bite of that juicy apple.