Buffett's "taxing the rich" solution won't solve debt or deficits

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    Aug 21, 2011 6:11 PM GMT
    http://www.cnsnews.com/news/article/warren-buffett-s-tax-solution-won-t-solv

    "Taxing millionaires and billionaires more – a position advocated by billionaire Warren Buffett and President Barack Obama – won’t make much of a dent in the national debt or the record federal budget deficits, a new study finds.

    “Even taking every last penny from every individual making more than $10 million per year would only reduce the nation's deficit by 12 percent and the debt by 2 percent,” the non-partisan Tax Foundation’s David Logan writes.

    “There's simply not enough wealth in the community of the rich to erase this country's problems by waving some magic tax wand,” said Logan."
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    Aug 21, 2011 6:21 PM GMT
    So are you suggesting that taxes be raised on everyone?
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    Aug 21, 2011 6:22 PM GMT
    vincent7 saidSo are you suggesting that taxes be raised on everyone?


    Nope.
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    Aug 21, 2011 11:55 PM GMT
    Thanks for showing this report, This should tell all that we have to tackle this debt from all sides, not just from the entitlement side, I think one of the most important things to do is cut military spending since we have little to show for all that wasted money, just like the two wars that started us down this debt road barrowing from china to cover the costs. We could totally do away with the expensive and overkill of the Homeland Security Dept. The CIA, FBI, Boarder Patrol, MP's, National Guard, State Police and local police can work together and accomplish what needs done to keep us safe.

    Everyone has to realize too that unemployment has greatly cut into revenues to run the safety net programs and whether popular or not, there needs to be a quick and massive spending on infrastructure to get money back in the hands of the masses which will start money circulation in the economy so orders and demand for goods and services can again grow. This in turn will kick in the private sector in new demands for the goods / Building materials and services to accomplish the projects. From there spending increases for things that people need, orders start increasing, businesses start adding employees and the snowball starts gaining in size and in turn increases Government revenues to help start lowering the debt.

    This has worked before and it can work again. Just as has always happened, a projects construction has a dollar figure and Contractors apply by bidding with their estimate of cost, a contract is awarded to some responsible low bid builder, He signs contracts takes a letter of credit to a building materials supplier, picks up the Materials he needs to get started, calls previous construction workers that had been layed off, then goes to work, at the end of the week, the contractor writes checks to pay his workers, and to pay for materials. He may need more equipment so he goes and buys it. The bank hands out the money, the fed prints the money to back these contracts. and this happens all over the US and gets things moving again. This kind of thing will have to be added to cuts, and increased taxes in order to bring us out of this mess. Again, its worked before it can and will work again, there has to be a multi faceted attack on this debt. What I suggested above has been done ever since the fed was created, so is nothing new.

    If you think the private sector in and of itself will suddenly start spending and hiring without there being orders/demand for goods and services to help put people back to work and get our economy moving again, your sadly mistaken, the snowball to grow will have to be given a push by the government as part of the cure for our economy problems.

    Cuts alone cannot release enough revenue to cover the debt , just as we cannot totally saddle the debt burden on the rich. Cuts if too deep ending safety net support will only exacerbate the slow economy, stalling it further, robbing it of money to circulate, as a result even fewer orders and demand for goods and services will be the result.

    The Austerity only TBaggers are going to have to get out of the way and Republicans are going to have to come around sooner or later to the fact that this problem must be attacked from many fronts at a time, Cuts alone will only add to the problem and will not get our economy moving again.

    Any moderate republicans/conservatives see any light in this suggestion ?

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    Aug 22, 2011 12:08 AM GMT
    I don't recall Buffett or anyone else suggesting it would.

    As reallifedad says, it must be attacked from every possible side in a thoughtful and responsible manner and not used as a weapon to win an election or damage an opponent.
  • Menergy_1

    Posts: 737

    Aug 22, 2011 1:01 PM GMT
    I liked Jon Stewart's proposition/mathematics explanation on how to close that $1.4 trillion gap.......as I recall he said, "hey, if we take EVERYTHING they posses in the world from the 50% of the US population that "pays no taxes whatsoever" ( Southbeach TM) that would amount to $1.4 trillion. Voila'!

    Of course the billions in tax exemptions on the super-rich that the conservatives refuse to allow to be reversed are "only a pittance or drop in the bucket" and wouldn't do "much" to close the gap......according to FOX news "financial analysts" who were shown in Stewart's montage of comments about the proposal to tax billionaires more.....

    Difference between $800 billion (pffft) and taking away the $1.4 trillion from the "poor" (yes, the FOX comments used quotation marks in discussing how well off the "poor" actually are - such as having refrigerators, a microwave, air conditioning and heat, etc.icon_rolleyes.gif And there was Sarah Palin and FOX commentators pushing for slashing the 1 million dollars for a few art/cultural programs support by the federal government.....
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    Aug 22, 2011 2:01 PM GMT
    realifedad said Thanks for showing this report, This should tell all that we have to tackle this debt from all sides, not just from the entitlement side, I think one of the most important things to do is cut military spending since we have little to show for all that wasted money, just like the two wars that started us down this debt road barrowing from china to cover the costs. We could totally do away with the expensive and overkill of the Homeland Security Dept. The CIA, FBI, Boarder Patrol, MP's, National Guard, State Police and local police can work together and accomplish what needs done to keep us safe.

    Everyone has to realize too that unemployment has greatly cut into revenues to run the safety net programs and whether popular or not, there needs to be a quick and massive spending on infrastructure to get money back in the hands of the masses which will start money circulation in the economy so orders and demand for goods and services can again grow. This in turn will kick in the private sector in new demands for the goods / Building materials and services to accomplish the projects. From there spending increases for things that people need, orders start increasing, businesses start adding employees and the snowball starts gaining in size and in turn increases Government revenues to help start lowering the debt.

    This has worked before and it can work again. Just as has always happened, a projects construction has a dollar figure and Contractors apply by bidding with their estimate of cost, a contract is awarded to some responsible low bid builder, He signs contracts takes a letter of credit to a building materials supplier, picks up the Materials he needs to get started, calls previous construction workers that had been layed off, then goes to work, at the end of the week, the contractor writes checks to pay his workers, and to pay for materials. He may need more equipment so he goes and buys it. The bank hands out the money, the fed prints the money to back these contracts. and this happens all over the US and gets things moving again. This kind of thing will have to be added to cuts, and increased taxes in order to bring us out of this mess. Again, its worked before it can and will work again, there has to be a multi faceted attack on this debt. What I suggested above has been done ever since the fed was created, so is nothing new.

    If you think the private sector in and of itself will suddenly start spending and hiring without there being orders/demand for goods and services to help put people back to work and get our economy moving again, your sadly mistaken, the snowball to grow will have to be given a push by the government as part of the cure for our economy problems.

    Cuts alone cannot release enough revenue to cover the debt , just as we cannot totally saddle the debt burden on the rich. Cuts if too deep ending safety net support will only exacerbate the slow economy, stalling it further, robbing it of money to circulate, as a result even fewer orders and demand for goods and services will be the result.

    The Austerity only TBaggers are going to have to get out of the way and Republicans are going to have to come around sooner or later to the fact that this problem must be attacked from many fronts at a time, Cuts alone will only add to the problem and will not get our economy moving again.

    Any moderate republicans/conservatives see any light in this suggestion ?



    I do agree that we need to cut military spending.