[extropy-chat] Redistribution of wealth

[Kevin Freels]

NO NO NO NO NO!
Deficits have nothing to do with tax cuts!
(This is oversimplified and for brevity I have left out the entire concept
of a broader tax base generating more revenues)
If you reduce your income by $10,000 per year, and you keep your expenses
down by the same amount, there is no problem. The problem is when you reduce
your income by $10,000 yr, then your kid needs emergency heart surgery which
costs you $100,000. You would have broken even for the year, but now you
have a $100k "deficit". The $10,000 income reduction did not cause the
deficit, the heart surgery did.
Why do so many people have trouble understanding this?
Of course, a person would be wise to save their money in a savings account
(or similar), but with government it is different. They should not take our
money and put it into an account for a rainy day. Nor would they. Whatever
they get they will spend. If there was a surplus, they would find something
else to spend it on. The voting people would make SURE that the "extra"
money was spent on some "worthy cause".
Because of this nature of our society, the only two options become deficit
or break even, and breaking even is impossible.


----- Original Message ----- 
From: "Brent Neal" <brentn at freeshell.org>
To: "ExI chat list" <extropy-chat at lists.extropy.org>
Sent: Tuesday, September 28, 2004 5:54 PM
Subject: Re: [extropy-chat] Redistribution of wealth


> (9/28/04 12:29) Mike Lorrey <mlorrey at yahoo.com> wrote:
>
> >Ah, but you forget the principle of supply side economics (which the
> >red states believe in) vs demand side economics (which the blue states
> >believe in). Supply siders say that if you reduce the overall tax rates
> >on the tax payers, that the economic synergies will actually generate
> >more tax revinue as economic growth increases
>
>
> Wow, too bad that hasn't worked out like they hoped they would in re the
fricken huge deficits that W.'s asinine tax "cuts" have led us to.  Maybe
next time they'll figure out that shifting the burden of taxation to the
median earners is not a growth policy.
>
>
> B
> -- 
> Brent Neal
> Geek of all Trades
> http://brentn.freeshell.org
>
> "Specialization is for insects" -- Robert A. Heinlein
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