Very good Ben Carlson article on the debt ceiling soap opera

[Dash man]

We are a warrior nation with 50% of our discretionary budget going to the military, something Eisenhower warned us could happen in his farewell address. I am fine with supporting Ukraine but instead of borrowing the money to do so we should have a temporary tax increase to fund that support. If the citizens are willing to support that, as I am, we should provide the support but if the citizens are not willing to support that we should not borrow to provide the support.

The highest marginal tax bracket was 92% when Eisenhower took office and he hated high taxes so it was reduced to 91% while he was in office. He did not support additional cuts until or unless the country made progress in reducing the national debt. Despite these high marginal tax rates the country grew and prospered and there was much less of an economic difference between the haves and have nots.

Today's highest marginal tax rate is 37% and I often wonder if we have more of a revenue problem than a spending problem. We probably have both.

Yes, but I remember being able to deduct so much more, such as any interest paid on anything, all medical expenses, all property tax and state and local tax.

 

[Popeye]

Yes, but I remember being able to deduct so much more, such as any interest paid on anything, all medical expenses, all property tax and state and local tax.

Exactly. That part is always left out when the old rates are brought up in discussions.

As to spending vs revenue, that will always depend on individual beliefs. If you like enormous government you say revenue, if you like constitutionally sized government you say taxes. The answer is compromise between those two points of view.

 

[Montecfo]

We are a warrior nation with 50% of our discretionary budget going to the military, something Eisenhower warned us could happen in his farewell address. I am fine with supporting Ukraine but instead of borrowing the money to do so we should have a temporary tax increase to fund that support. If the citizens are willing to support that, as I am, we should provide the support but if the citizens are not willing to support that we should not borrow to provide the support.

The highest marginal tax bracket was 92% when Eisenhower took office and he hated high taxes so it was reduced to 91% while he was in office. He did not support additional cuts until or unless the country made progress in reducing the national debt. Despite these high marginal tax rates the country grew and prospered and there was much less of an economic difference between the haves and have nots.

Today's highest marginal tax rate is 37% and I often wonder if we have more of a revenue problem than a spending problem. We probably have both.

Looking at tax rates alone says little about how much tax was being paid. There were tax shelters and loads of deductions that do not exist now.

Our taxation system has become far more progressive since Eisenhower. Now 40-45% of the folks pay no federal income tax at all. And the "haves" pay essentially all the federal income tax at very progressive percentages of income.

 

[Koolau]

Looking at tax rates alone says little about how much tax was being paid. There were tax shelters and loads of deductions that do not exist now.

Our taxation system has become far more progressive since Eisenhower. Now 40-45% of the folks pay no federal income tax at all. And the "haves" pay essentially all the federal income tax at very progressive percentages of income.

Not only that, some folks have enough earned income tax credits to get a refund without actually paying tax.

 

[Beststash]

I have two words for you about tax rates and revenue. Art Laffer.

Analogy of Art Laffer in two words. Voodoo Economics.

Doing the same thing repeatedly and expecting different results is the definition of insanity.

 

[Koolau]

Analogy of Art Laffer in two words. Voodoo Economics.

Doing the same thing repeatedly and expecting different results is the definition of insanity.

Hey, it w*rked pretty well for Ronald Reagan.