Comments on: The Deficit is the Work of Bush? http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/ badice.com ~ musings for the masses Mon, 07 May 2012 21:28:14 +0000 hourly 1 http://wordpress.org/?v=3.3.2 By: Jeff http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-112 Jeff Thu, 04 Mar 2010 14:30:23 +0000 http://badice.com/?p=2573#comment-112 http://taxvox.taxpolicycenter.org/blog/_archives/2010/3/2/4470316.html http://taxvox.taxpolicycenter.org/blog/_archives/2010/3/2/4470316.html

]]> By: Jeff http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-111 Jeff Mon, 15 Feb 2010 02:02:08 +0000 http://badice.com/?p=2573#comment-111 Here's a good Bartlett article about the Ryan plan. http://www.forbes.com/2010/02/11/cut-spending-taxes-budget-medicare-paul-ryan-opinions-columnists-bruce-bartlett.html Here’s a good Bartlett article about the Ryan plan.

http://www.forbes.com/2010/02/11/cut-spending-taxes-budget-medicare-paul-ryan-opinions-columnists-bruce-bartlett.html

]]> By: Jeff http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-110 Jeff Thu, 11 Feb 2010 16:50:24 +0000 http://badice.com/?p=2573#comment-110 I'm definitely not for getting rid of SS. I assume you mean Ryan's plan to privatize it. I'm not for that (unless his plan is different from what has been proposed by Republicans in the past). The whole point of SS is to provide a safety net for seniors. Yes, it's a form of welfare but it's a very important protection for a very vulnerable segment of the population (a lesson learned from the Great Depression). I would be more in favor of means-testing but certainly willing to hear other options, even the Ryan option if it doesn't entail ending SS. Regarding an import tax, how would that not spark a major worldwide trade war? The current proposals in Congress and in Obama's budget provide for an expiration of the Bush tax cuts for people making over $250K but also creates tax incentives for small businesses and the addition of jobs. Yes, I'd like to have a simpler tax system, but in the short term where we need immediate job growth and increase gov't revenue, I think Obama is trying to strike the right balance. I think history has shown that repeatedly cutting taxes for everyone does not generate the kind of economic boom required to pull the economy and the budget out of a ditch, especially this one. It requires a balance between gov't spending, targeted tax incentives and sustainable broad tax levels. In my opinion, the Bush policies threw these things all out of whack to make it much harder for us to withstand the inevitable cyclical economic downturn or, in this case, near depression. I’m definitely not for getting rid of SS. I assume you mean Ryan’s plan to privatize it. I’m not for that (unless his plan is different from what has been proposed by Republicans in the past). The whole point of SS is to provide a safety net for seniors. Yes, it’s a form of welfare but it’s a very important protection for a very vulnerable segment of the population (a lesson learned from the Great Depression). I would be more in favor of means-testing but certainly willing to hear other options, even the Ryan option if it doesn’t entail ending SS.

Regarding an import tax, how would that not spark a major worldwide trade war?

The current proposals in Congress and in Obama’s budget provide for an expiration of the Bush tax cuts for people making over $250K but also creates tax incentives for small businesses and the addition of jobs. Yes, I’d like to have a simpler tax system, but in the short term where we need immediate job growth and increase gov’t revenue, I think Obama is trying to strike the right balance. I think history has shown that repeatedly cutting taxes for everyone does not generate the kind of economic boom required to pull the economy and the budget out of a ditch, especially this one. It requires a balance between gov’t spending, targeted tax incentives and sustainable broad tax levels. In my opinion, the Bush policies threw these things all out of whack to make it much harder for us to withstand the inevitable cyclical economic downturn or, in this case, near depression.

]]> By: Stephan Segraves http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-109 Stephan Segraves Thu, 11 Feb 2010 16:17:40 +0000 http://badice.com/?p=2573#comment-109 Again, Ryan suggests something like what you propose for taxes. He wants to scrap the current tax system, simplify it, and make it easier for Americans to understand. He also wants to get rid of social security as we know it for anyone under 55. I'm all for that. I would like to know how you raise taxes on corporations and employees while creating incentives for job growth. It seems like such incentives (tax breaks, government contracts, etc.) would go against your point about simplifying the tax system. The one thing that could potentially be a revenue maker and encourage businesses is the creation of an import tax. We are one of the only countries in the world to only tax exports, so I think we need to play catch up and tax the imports. We shouldn't slap the hands of businesses because they ship out of the country. Again, Ryan suggests something like what you propose for taxes. He wants to scrap the current tax system, simplify it, and make it easier for Americans to understand. He also wants to get rid of social security as we know it for anyone under 55. I’m all for that.

I would like to know how you raise taxes on corporations and employees while creating incentives for job growth. It seems like such incentives (tax breaks, government contracts, etc.) would go against your point about simplifying the tax system.

The one thing that could potentially be a revenue maker and encourage businesses is the creation of an import tax. We are one of the only countries in the world to only tax exports, so I think we need to play catch up and tax the imports. We shouldn’t slap the hands of businesses because they ship out of the country.

]]> By: Jeff http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-108 Jeff Thu, 11 Feb 2010 16:06:52 +0000 http://badice.com/?p=2573#comment-108 Except that modestly raising taxes does increase government revenue. We've been lowering taxes for so many years things have really gotten out of whack. Personally, I'd like to see the whole tax system scraped and go to a simplier and more transparent system. But short of that, I'm in favor of going back to the same tax levels we had under Clinton when the economy seemed to work just fine. And, yes, you can do this while creating incentives for job growth at the same time. We can't continue to cut taxes for everyone while healthcare costs skyrocket year after year and the babyboomers retire and think somehow the deficit is going to magically shrink. If Republicans want their prescription drug coverage and Medicare Advantage option, we have to pay for it somehow. Except that modestly raising taxes does increase government revenue. We’ve been lowering taxes for so many years things have really gotten out of whack. Personally, I’d like to see the whole tax system scraped and go to a simplier and more transparent system. But short of that, I’m in favor of going back to the same tax levels we had under Clinton when the economy seemed to work just fine. And, yes, you can do this while creating incentives for job growth at the same time. We can’t continue to cut taxes for everyone while healthcare costs skyrocket year after year and the babyboomers retire and think somehow the deficit is going to magically shrink. If Republicans want their prescription drug coverage and Medicare Advantage option, we have to pay for it somehow.

]]> By: Stephan Segraves http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-107 Stephan Segraves Thu, 11 Feb 2010 14:01:45 +0000 http://badice.com/?p=2573#comment-107 I was listening to Paul Ryan talk about his roadmap and one of the things he mentioned was a VAT like tax on corporations. Sounds like his ideas are on the same page as Bartlett's. I was listening to Paul Ryan talk about his roadmap and one of the things he mentioned was a VAT like tax on corporations. Sounds like his ideas are on the same page as Bartlett’s.

]]> By: Stephan Segraves http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-106 Stephan Segraves Wed, 10 Feb 2010 15:22:30 +0000 http://badice.com/?p=2573#comment-106 But you can't put the cart before the horse. Raising taxes on people who are already hurting is not going to increase government revenue. Entitlement reform is certainly at the top of the list of things that needs to happen to get the economy running again. The focus needs to be on getting the economy running at full speed again. After that, taxes, healthcare, etc. can be debated in earnest. Trying to co-mingle all of the issues does not lead to good policy, it leads to patched together policy. But you can’t put the cart before the horse. Raising taxes on people who are already hurting is not going to increase government revenue. Entitlement reform is certainly at the top of the list of things that needs to happen to get the economy running again. The focus needs to be on getting the economy running at full speed again. After that, taxes, healthcare, etc. can be debated in earnest. Trying to co-mingle all of the issues does not lead to good policy, it leads to patched together policy.

]]> By: Jeff http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-105 Jeff Tue, 09 Feb 2010 17:00:16 +0000 http://badice.com/?p=2573#comment-105 At the end of the day, these issues are all kind of inter-related. Until the economy improves and we get some good job growth, tax receipts will continue to fall behind and the deficit will be insurmountable. However, getting the economy growing again is only one part of what needs to be done to get the deficit under control. Entitlement reform will have to be part of the equation. Regarding the VAT tax, I think Bartlett addresses the issues you raise. In fact, his argument for a VAT tax is that the mechanism is highly efficient, self-policing and transparent. It's ashame his ideas are not more seriously considered by Republicans and Dems. At the end of the day, these issues are all kind of inter-related. Until the economy improves and we get some good job growth, tax receipts will continue to fall behind and the deficit will be insurmountable. However, getting the economy growing again is only one part of what needs to be done to get the deficit under control. Entitlement reform will have to be part of the equation.

Regarding the VAT tax, I think Bartlett addresses the issues you raise. In fact, his argument for a VAT tax is that the mechanism is highly efficient, self-policing and transparent. It’s ashame his ideas are not more seriously considered by Republicans and Dems.

]]> By: Stephan Segraves http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-104 Stephan Segraves Tue, 09 Feb 2010 15:35:11 +0000 http://badice.com/?p=2573#comment-104 I am of the mindset that right now the deficit should not be the top priority. If more taxes are needed to pay it off, we're not going to accomplish that without people working, so priority number one should be kick starting the job market. As far as VAT taxes, I'll need to pick up Mr. Bartlett's book to understand his reasoning. Just off the top of my head, the biggest issue would be deadweight loss, or the tax not being sufficient to create positive results. The other issue that is common in Europe is outright fraud, putting companies out of business. I am of the mindset that right now the deficit should not be the top priority. If more taxes are needed to pay it off, we’re not going to accomplish that without people working, so priority number one should be kick starting the job market.

As far as VAT taxes, I’ll need to pick up Mr. Bartlett’s book to understand his reasoning. Just off the top of my head, the biggest issue would be deadweight loss, or the tax not being sufficient to create positive results. The other issue that is common in Europe is outright fraud, putting companies out of business.

]]> By: Jeff http://badice.com/2010/02/08/the-deficit-is-the-work-of-bush/#comment-103 Jeff Tue, 09 Feb 2010 15:19:56 +0000 http://badice.com/?p=2573#comment-103 I haven't read the article but I think the author might be refering to the 107th Congress, in which Republicans passed Bush's $1.35T tax cut in 2001, another tax cut in 2003 and the unfunded expansion of Medicare, all of which were opposed by most Democrats. If you have time and interest, I'd be interested to hear your thoughts on Bruce Bartlett's writings, especially his latest book "The New American Economy" in which he argues that supply side theory (of which he was one of the primary architects under Reagan) is not applicable to the current economic conditions. He's very hard on Republicans (and Democrats, but mostly Republicans because he was one). He argues (rightly, in my opinion) that the only realistic way forward is to increase tax revenue. His preferred method is through a VAT tax. I haven’t read the article but I think the author might be refering to the 107th Congress, in which Republicans passed Bush’s $1.35T tax cut in 2001, another tax cut in 2003 and the unfunded expansion of Medicare, all of which were opposed by most Democrats.

If you have time and interest, I’d be interested to hear your thoughts on Bruce Bartlett’s writings, especially his latest book “The New American Economy” in which he argues that supply side theory (of which he was one of the primary architects under Reagan) is not applicable to the current economic conditions. He’s very hard on Republicans (and Democrats, but mostly Republicans because he was one). He argues (rightly, in my opinion) that the only realistic way forward is to increase tax revenue. His preferred method is through a VAT tax.

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