More Active Posts
Front Page
Today’s Comic
 |
 7 Comments |
 |
Topic: Cartoon |  |
Email a friend |
 |
Keywords: |  |
RSS 2.0 |
 |
Both comments and pings are currently closed. |  |
Share this: |
One more diversion
Unfortunately the cartoon doesn’t work. It suggests that putting more in the bin of the taxes will level the train.
I’m in agreement with Met…
The cartoon doesn’t work. But it’s because the economy doesn’t run on taxes…
Actually it works for me. I see it as raising taxes will tip the engine over the edge. It will happen. What they need to do is rebalance the front end.
Actually it’s confusing what the artist had in mind when he had the donk saying “let’s raise this”.
If the artist meant “raise this” as in, raise the back end of the train, then the artist meant it in the sense that Chas did…
If the artist meant “raise this” as in, let’s increase the taxes (amount of coal) in the back of the train, then the artist meant it in the sense Met did…
In any case, I stand by my assertion that the economy doesn’t run on taxes…
Part of the problem with our economy is the fact that were are so far in debt both nationally and individually. Over taxing is part of the problem but not all the problem. Another part of the problem is our trade deficit. We import more than we export. I am all for free trade as long as it is fair trade too.
The average American is way more in debt personally then the US government will ever be and the personal debt of the average American is way more risky too.
The GDP of the USA is approaching $14 trillion a year while the debt is approaching $9 Trillion for a debt ratio of 64%. For every $10 in income the government carries $6.4 in debt. For some reason people think this is just horrible until they look at their own personal debt.
Even richer Americans say making $100,000 a year own $300,000 homes that they have $60,000 worth of equity in. Their debt on the their home is $240,000 or 240% of their income. They also have $15,000 in credit card debt and $25,000 in other personal debt. So even high wage earning Americans have debt ratios of 280% or more than 4 time worse than the USA’s debt.
But the USA pays way less a percent in interest rate than Americans do to. No American has a credit card, home mortgage or car loan at 3.5% interest.
The worse shape America’s finances were in was right after the Revolution, right after WW1 and WW2 and of course the worst right before Reagan became president. What was the first thing he did as President? He cut the highest tax rate from 70% to 30% for the richest Americans (rather than the 3% Bush did) and he cut taxes for every other American but at a lower amount. Bush actually gave higher tax cuts to everyone except the rich who now pay a higher amount of total taxes paid than they did before the Regan tax cuts. The result of Reagan’s tax cuts was to put the USA’s finances back in order by increasing tax revenues because the income just exploded as GDP.
$200-$300 billion total deficits (which include trade deficits) per year is nothing for a country with $170 Trillion net worth. It’s less than an average retired American spends from their meager savings each year as a % and Americans haven’t saved anything for their retirement - except for that $170 Trillion net worth they have managed to acquire.
The only thing higher taxes accomplish, especially on the rich, is make all Americans poor, raise unemployment rates, reduce total net worth, reduce disposable income, increase interest rates, reduce economic growth and generally accomplish what socialists want - everyone to be equally poor, miserable and dependent on them for their basic survival, well being and happiness. Sorry, you can’t have any of that today, but don’t fret, no on else (except them of course) are getting any either - maybe tomorrow should you loive that long
Sorry for the extra zero typo - Net worth of USA’s citizens is $17 Trillion in 2005 not $170 trillion. It is about $18 Trillion today after the housing and stock melt down, just since the socialists took over Congress in Jan 2007.