> The extra money available now could pay down the >debt or could shore up
Social Security or could make >sure that when the economy slows down (as
it's already
>doing, resulting in less tax being collected because fewer >people are
working), then there will still be money >available for government programs,
and I'm not
> talking about welfare or art funding either. I'm talking >about roads, and
police, and education loans and >whatever else even conservatives would
agree we
> need.
I wonder how many employment sectors are going to experience significant
losses, with resulting lay-offs and people out of work. The only sector I
keep hearing about is the dot.coms and people losing money in their stock
investments and also retirement plans. The dot.com crashes have badly
affected certain regions like in Northern California and there would be a
ripple effect in real estate, luxury items, fancy restaurants and other
sectors that depend on an upturned economy. I haven't heard of there being
a great national increase in unemployment, though. Maybe the numbers of
unemployed will not be significant enough to affect the tax revenues. Save
it for a rainy day is a wise approach, no doubt. But also throwing a bit
back around across the board couldn't hurt. It's funny when it comes to
money - whether it's the government that holds it, or the individual -
whatever is available and readily on-hand tends to be spent to the maximum.
I don't want to gouge welfare and social spending or programs that are
needed, but there is an understandable instinct to want to have a little
back rather than leave it up to special interests in the bureaucracy to
spend away to the last cent.
> I compare the tax rates here with other countries and >the top federal
rate of around 30% doesn't seem so bad >to me. I can understand that other
people might
>not agree and feel like that's way too much to be paying.
Here's how I look at it. You start off with 30% federal top rate - roughly
one-third of your income deducted. Then you add on State, local, Social
Security, and other misc. Then you add on sales tax on nearly everything
you purchase. When all is said and done I personally am paying 60%, or two
thirds of my income on taxes. I live in one of the most expensive cities in
the world on top of that where I have never been able to afford to purchase
a home (and get some tax write-off). I realize this is not the economic
situation for many people living across the U.S. who have lower, or, no
state income tax, and have lesser sales tax rates, but you can see how
regional variations in economic reality may make some people more pro-tax
reform than others.
Kakki
