RE: The work-around President

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The work-around President

in funny •  6 years ago  (edited)

"the poor" pay a vanishingly small percentage of federal taxes.
There are other taxes then federal taxes.

which they also pay a vanishingly small portion of. Except maybe cigarette taxes, why do we have cigarette taxes?

And anyway taxes are not the most important thing. You have to look at ALL government income/expenditure.
For those tax breaks normally services are cut that profit the poor (and who are much more reliant on those).

Here in America that's not necessarily so, we don't need to cut anything to cut taxes, we simply run a deficit.

Cuts to public schools for example are of no interest for those who send their children to private schools because they are rich. Same goes for health service and and and.

Subsidizing things like education, health services and other things is why things like education, health services, housing and other things are so expensive. Imagine the government tried to fight "hunger" by issuing vouchers for cheeseburgers for any "poor" people and that the value of a cheeseburger voucher was set at $10, would any burger joint ever sell a cheeseburger for less than $10? OR would the cheeseburger lobby lobby for and receive annual increases in the cheeseburger voucher? With cheeseburgers so expensive wouldn't more people qualify for vouchers?

Isn't that exactly what happens with subsidized health, education and housing?

Of course it's better to free up capital for investment instead of redistributing it

Excellent!! We found something we agree on!

But that seldom happens. And it definitely does not happen in a situation like the current one. If you want to know if tax cuts would be going to investments, then just look at stock paybacks.

Uh huh, so what do you think people do when they sell their stock at a big profit due to a stock buyback, do they bury it in the backyard or reinvest it in something else?

Even if the only thing they did with the reduced tax burden more on par with the rest of the world was stock buybacks that would be great in terms of stimulating investment.

If a company buys back it's stock it means either
A) Managers are trying to maximize their personal profit at the cost of the company - and then they aren't going to invest additional money, but put it in their own pockets, or

LOL, hold on, if you got a few million as a bonus you would put it in your pocket? You wouldn't invest it in anything? you wouldn't spend any? Of course you would invest it, you would be a fool not to. If you didn't invest your money and buried it in the backyard you would lose a lot of money due to the effects of inflation so you have to invest in something just to maintain the value of your money.

B) the company sees no reason to invest money, not even to pay back existing loans (and every big company has loans). Additional money is ahem... unlikely to change that.

In which case they pay dividends to shareholders who then take those dividends and do what with them if they are smart?

They reinvest them!

It is a bit like a little sister of the trickle down bullshit:
There is just no reason for a company to pay workers more (trickle down) because profits are rising.

That is true that is not a reason to pay people more, what is a reason to pay people more is low unemployment rates making employers compete to get workers. Some companies will and have already chosen to use their increased profitability to expand their operations. You know there is record low unemployment in the US, especially among the uneducated and minorities, that's what leads to increased wages.

Here in America there are no "the rich" or "the poor"
This is even more funny than the "free market" sentence!

It's true, unlike other places America has no fixed castes or classes, anyone can become rich or poor, someone who is rich today could be poor tomorrow or vice versa. All that class warfare garbage from Marx comes from a society where there were aristocrats and serfs. Those are fixed classes. We don't have that.

why do you think class warfare applies here?
Because I would be extremely surprised if the US - as one of the least egalitarian and richest countries in the world no less - is the only country on earth where there is no class warfare.

You need classes for that, we have no class ;)

Maybe you should google "class warfare Warren Buffet". You never know what you might find. Maybe even a war.

I don't use google, it's evil. Was Warren Buffet born to "the rich" class?

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