geedafotus (Saturday 8th of November 2008 02:01:53 PM)

If the presentation is correct then how can it be that statistics by the IRS show that the top 25% pay over 87% of all the income tax.

leearnold (Saturday 8th of November 2008 03:55:29 PM)

Where is the error? In three years things got worse! In 2007, the TOP 20% of the population (making over about $97,000) pulled in about 55% of the income, paid about 88% of the individual income tax, and paid about 40% of the payroll tax. The BOTTOM 80% (making under $97,000) made 45% of the income, paid 12% of the income tax, and paid 60% of the payroll tax. The TOP 1% of the population made almost 20% of the income, paid 37% of the income tax, and around 4% of the payroll tax.

narutofan1108 (Saturday 8th of November 2008 10:20:09 PM)

so you are not with Ron Paul on this I see.

leearnold (Sunday 9th of November 2008 12:06:03 AM)

We all want individual freedom, and the economy can't work without private property. But society can't work without big government, due to the increasing complexity of the world -- the market system can't solve that. I believe that the distribution of income and wealth will always be a steep pyramid by its nature, and that your position in it will be based partly on skill, but also based partly or even mostly on luck. So I also believe that taxation should be steeply progressive.

Theman77779 (Monday 10th of November 2008 12:41:01 PM)

leearnold Or the government should just do less the we don't need such high taxes. Also higher taxes mean less gain as we saw under Reagan and more economic growth which help all. Now I agree the Bush tax cuts are bad and should be replaced by the needed flat tax. Why do part of my taxes go to pay farmers still. Why pay welfare when that same money can make new jobs? Everyone should pay a low flat tax.

leearnold (Monday 10th of November 2008 01:22:59 PM)

Saying that the government "should just do less" is easier than saying how to make it happen, successfully and without damage. Despite libertarian delusion, no one is really running around trying to make government bigger. Nobody likes big government. Reagan cut taxes but CONTINUED big government spending, thus running-up a huge deficit. That is why the economy did well: "Borrow and spend." "Flat tax" means everybody pays the same rate. That would be very unfair to the poor and middle class.

Theman77779 (Saturday 8th of November 2008 08:39:23 AM)

The 2000-2002 should have lasted much longer than it did. Clinton and the Federal Reserve inflated our currency and caused fake economic growth that did not exist. That is why 90% of those stocks truly had no value but with easy credit people invested. Then Bush wanted to stay in office so he continued this fake growth with the housing market. We need a flat tax like Hong-Kong where the poor and middle class pay little to nothing and the rich pay a little of the huge value.

leearnold (Saturday 8th of November 2008 09:32:30 AM)

Learn real economics or your comments will be deleted. Clinton's inflation started low at around 3%, then went DOWN. Real GDP growth rate was positive after the '92 recession. A stock bubble grew on top of that. Hong Kong is a CITY, without the U.S.'s infrastructure and security needs. China's taxes are involved, and complicated. There was NO prediction that the 2000 downturn would be long - aside from the hundreds of economists who said the Bush Tax Cuts were the wrong way to get out of it!

leearnold (Saturday 8th of November 2008 08:33:38 AM)

Savings equals investment, more or less. Whether or not this creates jobs, is conditional. Actually an enormous amount of the investment sought the quickest returns in financial asset inflation. So, the 2000-2002 downturn lasted longer, job creation was terrible, and now we're in an asset-deflation credit-crunch, combined with another recession.

leearnold (Saturday 8th of November 2008 08:35:11 AM)

Flat tax? If you combine ALL taxes -- federal, state, local -- we have a flat tax NOW, all the way down through the second quintile! A flat tax punishes the poor disproportionately. Backing by gold will do nothing: all the problems show-up in other ways.