TM is stuck on tax cuts, so an additional tax wouldn't work.
And war bonds are really only a supplement, not a standalone solution.
The only war I'm aware of that had tax cuts occur is the recent one in Iraq and all that did was add to large debt.
A lot......if you fix a rate and war occurs, not only is there generally a drop in consumer spending, there is a need to finance that war from a new source, or raise the tax rate.
Indeed....that was to be my next argument
Yes I want tax cuts.......what I really after though is reduced spending..which lets us operate on less tax.TM is stuck on tax cuts, so an additional tax wouldn't work.
The only war I'm aware of that had tax cuts occur is the recent one in Iraq and all that did was add to large debt.
Revenues did not go down with that tax cut...however spending went up.
History has shown us time and time again that tax cuts do not always mean less revenue and hikes do not always mean more revenue.
With tax cuts the consumer spends more...the increased trading increases revenues.
Tax hikes can lead to less trading thus less tax revenues.
The growth of the economy is determined by non essential items ...not by paying the bills of necessity.
Its the "junk' we buy that is growth as necessity items stay the same...having an extra 30 bucks in your pocket as well as 19 other people having the same..is 600 bucks..this 600 bucks gets spent on other things besides rent.
These items are taxed...the employees that made the items are taxed..the corp is taxed...the remained is often spent again and so goes the cycle...as we can see the 600 is quickly recuperated.
With tax hikes...one doesnt have this money to spend...the economy slows..then they have to raise taxes again to obtain the same revenues.
Look at it like this...if we took 50 percent more of a paycheck{tax} than we currently are now {just for demonstration}
Retail sales as well as services will greatly be slowed...many people will close the doors...we will become a third world country.
Now lets get 25 percent more of our check{less tax} than we currently are {again just for demonstration}..current retail and services could not keep with the demand....we have to grow...this causes more jobs...more trading..more revenues.
This doesn't even include all the construction involved...which in itself will require more materials ..more jobs..thus even more revenues.
A lot......if you fix a rate and war occurs, not only is there generally a drop in consumer spending, there is a need to finance that war from a new source, or raise the tax rate.
How does a fixed rate and war equate to less consumer spending?{other that the soldiers them selves being gone}
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