Comments on: Family Feud on Taxes – My Shot at Rocket

By: extra personal finance reading | rocket finance

extra personal finance reading | rocket finance — Fri, 25 Apr 2008 15:06:49 +0000

[...] Randall’s Rebuttal on the issue of taxes. [...]

By: Randall

Randall — Thu, 17 Jan 2008 14:23:21 +0000

@Everyone,
I skipped over the part about reducing taxes = increased revenue, just touching on it with the ‘trickle-down theory’ and ‘Voodoo Economics’ statements. During the Reagan era, trickle-down theory espoused that if taxes were cut for business (i.e. higher-income people) that the money would ‘trickle-down’ throughout the economy. This theory was debunked by the fact that most wealthy don’t spend MORE money when they earn a little more. They already spend as much as they want. Giving them a LITTLE more doesn’t change their spending habits, ergo no trickle-down to the little guy.

As for Japan and their diet, I agree that the American diet is horrible, but our wonderful consumer economy and it’s prevalent advertisements encourage overconsumption. But on a comparison of medical systems, the Japanese system is still more cost-effective when you look at the number of doctors/nurses per capita. And it covers more of the primary care and preventative care areas that save money (and lives) down the line.

@Becky,
I believe that new(er) government employees have a plan similar to our 401k, but even more limited in choices of investment options. It’s called a Thrift Savings Plan. All things considered, I’m glad to have a 401k.

I don’t discount your experience with people that abuse the welfare system, but any system has it’s abusers. Many of the state Welfare programs have been changed to require more work and education to encourage people to get back in the workforce. I agree, that doesn’t give everyone incentive to do so though. But for those that truly need a ‘temporary’ assistance, it’s invaluable. I’ve been on welfare (briefly) myself. I didn’t stay on it for very long, but during those tough times, it greatly helped.

By: Becky

Becky — Thu, 17 Jan 2008 03:57:41 +0000

@Deamiter
I’m not sure if you were talking to me, but just in case, I didn’t comment on that point because I don’t know anything about that stuff

@Randall
I agree with you in #3 about cutting “deadwood”. I was also thinking that government jobs have really good pensions, much better than anything in the private sector. I would think cutting back on those would be a money saver (increasing the age of when they get benefits is what I’m thinking). I’m not trying to be harsh, but I don’t know *anyone* not in government who gets a pension. They’ve become outdated and caused a ton of money problems for companies like Ford and GM. Thoughts?

By: Deamiter

Deamiter — Wed, 16 Jan 2008 21:38:31 +0000

I noticed you skipped over his point about how cutting taxes supposedly increases tax revenue — this is yet another claim utterly unsupported by data. Interestingly enough, When Bush (W) cut taxes twice in 2001 and 2003, tax revenues dropped significantly from 994 billion in 2001 to 927 billion in 2005.

The hypothesis that tax cuts increase revenue is an interesting hypothesis, and is actually probably true if taxes are ridiculously high, but recent data seems to suggest that our tax rates are nowhere near that point.

By: Carnivals, a Festival, and Fireworks | beingfrugal.net

Carnivals, a Festival, and Fireworks | beingfrugal.net — Wed, 16 Jan 2008 18:26:04 +0000

[...] the consensus on the Family Feud and fired back. Not one to let a friendly attack go unanswered, Randall refuted rocketc’s points one by one and added his own. And that’s where things stand right now. Is the friendly debate over? Or will there be more? [...]