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**bixlewlyimila** · 09-03-2011, 04:39 AM

As long as the Republicans refuse to look at raising tax rate on the top 1%, but are willing to make deep cuts in programs for the poor, the elderlies and the sick. . .they will have a difficult time getting any person who can do some math to make sense of their policies!

Republicans favor tax reform, and tax reform will see the rich pay more because of fewer deductions. But the top rate on the rich is already 35% I believe. Raising the rate won't bring in much money, it will only increase the use of existing loopholes, and in addition, create pressure for more loopholes, which Democrats will gladly give up to shield taxpayers in blue states.

But the real issue is that spending is 25% of GDP. Revenues are currently 15%. Historically, revenues are 18% and spending is 21%. Revenues will naturally rise back to 18% once the temporary stimulus tax breaks and the economic recovery is entrenched. Spending, however, has to drop from 25% back down to historical levels. And that can't be done without cuts.

09-03-2011, 04:39 AM	#24
bixlewlyimila Join Date Oct 2005 Posts 367 Senior Member	As long as the Republicans refuse to look at raising tax rate on the top 1%, but are willing to make deep cuts in programs for the poor, the elderlies and the sick. . .they will have a difficult time getting any person who can do some math to make sense of their policies! Republicans favor tax reform, and tax reform will see the rich pay more because of fewer deductions. But the top rate on the rich is already 35% I believe. Raising the rate won't bring in much money, it will only increase the use of existing loopholes, and in addition, create pressure for more loopholes, which Democrats will gladly give up to shield taxpayers in blue states. But the real issue is that spending is 25% of GDP. Revenues are currently 15%. Historically, revenues are 18% and spending is 21%. Revenues will naturally rise back to 18% once the temporary stimulus tax breaks and the economic recovery is entrenched. Spending, however, has to drop from 25% back down to historical levels. And that can't be done without cuts.
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