Would doing both extremes simultaneously be viable for solving the financial problem?

  • qd2009

    Posts: 164

    Nov 13, 2012 6:42 AM GMT
    I'm not politically minded, but I'm noticing that Democrats want to solve the problem by raising taxes on rich. Republicans on the other hand want to solve it by closing tax-deduction loopholes and limiting entitlement programs.

    Is it a viable option to do all of the above at the same time?
    Raise tax on rich, close tax-deduction loopholes and limiting entitlement programs?
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    Nov 13, 2012 2:33 PM GMT
    qd2009 saidI'm not politically minded, but I'm noticing that Democrats want to solve the problem by raising taxes on rich. Republicans on the other hand want to solve it by closing tax-deduction loopholes and limiting entitlement programs.

    Is it a viable option to do all of the above at the same time?
    Raise tax on rich, close tax-deduction loopholes and limiting entitlement programs?



    I think so, but a little here and a little there; redo the tax cuts, making them smaller but still there. The same with scaling back on entitlements and tax loopholes. Unfortunately there seems to be an all-or-nothing mindset down there rather than a tweak-and-tinker one.

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    Nov 13, 2012 5:44 PM GMT
    This is a misrepresentation of the democratic position. Every other country that has tried to balance their budget has done so through a mixture of tax increases and sending cuts. Typically 10-30% tax increases and 70-90% spending cuts. The democrats policy has been that a similar mix should be pursued---it's the republicans that disavow tax increases completely.

    The bad news is that, as the IMF has acknowledged, spending cuts seem to have a much more negative effect on economies than was previously thought. This changes prudent policy somewhat: the spending cuts must be a little further in the future. There is no immediate pressure in any case as presently Real returns on treasury bonds are presently negative (!)

    Any sane resolution to the debt crisis must include tax increases for those able to bear them, spending cuts to inefficient entitlement programs and preferably a greatly simplified tax code.

    Food for thought: if healthcare costs per capita were the same in the US as in the UK---a country where pretty much everything is more expensive and health outcomes are significantly better---we would eliminate the deficit entirely.

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    Nov 13, 2012 11:08 PM GMT
    qd2009 saidI'm not politically minded, but I'm noticing that Democrats want to solve the problem by raising taxes on rich. Republicans on the other hand want to solve it by closing tax-deduction loopholes and limiting entitlement programs.

    Is it a viable option to do all of the above at the same time?
    Raise tax on rich, close tax-deduction loopholes and limiting entitlement programs?

    Dude, you only have it partially right. Democrats don't claim that raising taxes on the rich alone will solve the problem. Democrats understand that cuts are also necessary.
  • Webster666

    Posts: 9217

    Nov 14, 2012 3:27 AM GMT
    qd2009 saidI'm not politically minded, but I'm noticing that Democrats want to solve the problem by raising taxes on rich. Republicans on the other hand want to solve it by closing tax-deduction loopholes and limiting entitlement programs.

    Is it a viable option to do all of the above at the same time?
    Raise tax on rich, close tax-deduction loopholes and limiting entitlement programs?



    The tax deduction loopholes that the Republicans want to close, are ones that benefit the MIDDLE CLASS, such as the mortgage interest deduction, child credit, and education credits. And, the entitlement programs, such as Social Security, Medicare, and Medicaid, benefit the POORest and neediest people.