Riddle me this ...

[SkyDriver]

How can we keep going spending 26% when historically our revenues have averaged 18% ? Higher taxes don't work - people change their earning patterns.

[Doove]

Originally Posted by SkyDriver

How can we keep going spending 26% when historically our revenues have averaged 18% ?

We can't. But....

Higher taxes don't work - people change their earning patterns.

If you think we're going to get spending down to 15% of GDP, then you're as delusional as someone who thinks we can do what you're first point addresses. Taxes need to be raised. Ignoring that is dangerous.

[SkyDriver]

I didn't advocate anything. Just observing that over time tax revenues will average 18% of GDP regardless of the income tax rate as people change their habits as tax rates are raised. Obama said himself he knew an increase in capital gains tax would result in less capital gains revenue but it was the fair thing to do.

[TexTushHog]

Originally Posted by SkyDriver

I didn't advocate anything. Just observing that over time tax revenues will average 18% of GDP regardless of the income tax rate as people change their habits as tax rates are raised. Obama said himself he knew an increase in capital gains tax would result in less capital gains revenue but it was the fair thing to do.

Very misleading. As rates are adjusted up and down, the definition of taxable income is changed, which deductions are allowed under law is changed, etc. If we wanted to design a tax system that collected more than 18 - 22% of GDP, we could very easily do so. Yes, there would be some reaction in terms of GDP, but again 1) a tax system could be designed to minimize that reaction and 2) it would not be as dire as many wingnut economists predict.

[Marshall]

Originally Posted by TexHomoHog

Very misleading. As rates are adjusted up and down, the definition of taxable income is changed, which deductions are allowed under law is changed, etc. If we wanted to design a tax system that collected more than 18 - 22% of GDP, we could very easily do so. Yes, there would be some reaction in terms of GDP, but again 1) a tax system could be designed to minimize that reaction and 2) it would not be as dire as many wingnut economists predict.

I suppose that tax system would include Odumbo's civilian jack-booted thugs with automatics crashing in your front door.......

the bigger government is, the smaller the people are......