Very insightful comment. I hope you consider creating an account and participating.
Here's a question then, in terms of overall wages, middle class income and employment, is it the U.S. who is #1 in decline?
Germany does have a better strategy but they too have been hit by global labor arbitrage. Maybe we can ignore E. Germany since they still have not recovered from the reunification of those two economies (W/E), but on a nation-by-nation basis, which workforce/middle class has suffered the most?
It would not surprise me that the answer is the United States but I don't have any statistics at hand.
We are the world's biggest debtor, and our chief creditor (China) has made it unmistakably clear that they intend to be paid back, in full, with un-inflated dollars.
I think if that deduction is removed, so many state/local taxes are around property taxes and so there is an entire tax system (almost separate from income), devoted to property.
I think Graetz proposes massive simplification of the tax code in is proposal (which i listed a few valid criticisms I found above).
Reds is a little hollywood, a biography, more focused in on personal relationships, & I'm not sure how historically accurate it is, but more importantly, can I find it online, embeddable and not a copyright violation in doing so?
That's a key element to the Friday Night videos. ;)
This will either happen through a five year plan, or it will happen with a bottom-up revolution, starting with subscription farming and going up from there.
Hmm, now there's a thought of a way to do small-scale communism through distributist methods in a capitalist economy- subscription communes.
-------------------------------------
Maximum jobs, not maximum profits.
because we have been losing jobs at a record pace for the last 18 months or so that people receiving unemployment insurance are rolling off the benefits. Basically no longer being counted as unemployed nor receiving any support.
I've got extremely complex taxes. And I can't say that I've spent more than $300 to do my taxes in the last 10 years.
I'd personally like to see my tax form get *MORE* complex- use computers and websites to move budgetary authority from Congress and give it directly to the taxpayer.
We very well may likely see some different values expressed in the budget that way. And for those who like their taxes less complex, we can always make the automatic entry in "Allocated by Congress" to be equal to taxes paid, and need to be reduced manually to allocate to other uses.
I'm also for a top bracket of 95% with 100% deduction for household and business payroll. The reason? We had that in the 1950s and it caused the greatest expansion of the middle class the world has ever seen.
-------------------------------------
Maximum jobs, not maximum profits.
Paul Volker and others are suggesting that full employment may be lower going forward - unemployment higher. PIMCO is suggesting a "new" normal for economic growth much lower. This all suggests a much lower living standard.
Seebert's point about the fickleness of export-led growth is worth pondering. Just ask the Chinese, Koreans, Japanese and others whose overseas markets have taken a big hit. But the US case is fundamentally different. We have an enormous trade deficit, still running in excess of $600 billion annually. That means that our initial gains can be at the expense of imports. Imports of what? Energy makes up 30 - 40 percent of the deficit, and we can produce all of that in this country. Autos and parts make up another big chunk, and we ("Big" 3 plus transplants) can produce those here as well. Many of the manufactured goods imported from China (which accounts for most of that category of imports) were onceand could again be produced here.
Where we should aim for a long-term export market is in higher-end capital goods, the sort of product needed in many countries around the world. The Germans have used this strategy quite successfully for a long time, despite the strength of the D-mark and the euro.
I know it's early, but I won't get a chance this Saturday. How about the movie Reds? No, not because the Communist element, but early in the movie and throughout the rest, the main character is promoting the IWW. It's mentioned in this wonderful diary post. Thought it was relevant.
From what I've read, you appear not to be a fan of the flat tax, ok I get it. But like you mentioned about those 1040s, something has to be done. You need to simplify it, so much time and money is spent on just doing our taxes. It doesn't have to be that way. The complexity of the code is simply a massive opportunity for some slick bastard to "game the system" and not pay or underpay. Now what about say a four-tiered tax structure for personal income tax? For corporate tax, you could have something more complex that would fit with whatever industrial policy one wishes to establish.
Personal Income Tax
Those earning between $20-50k would pay 20% ( it could be more or less, I'm just using 20 for this example). The next tier would be $51-250k, which would be taxed at say 25%. The third level, those earning $250-999,999k would pay 25%. The final income bracket, those earning $1million or more would pay 30%.
Those below the first tier would be able to apply for 100% rebate from any national sales tax/VAT; they would also qualify for mortgage. People in the first tier would qualify for a 25% rebate on any national sales tax/VAT; and would qualify for mortgage deduction. Those in the third and fourth tier would not qualify for any rebate, but would for mortgage deduction.
Traditional personal deductions should be curtailed. I picked the mortgage one because it is one of the biggest investments one makes. If you're a renter, it should replace the mortgage one with one that is a percentage of your rent. Deductions for dependents, if such a deduction were to remain, should only apply to one tier. Essentially, you want to have the post card test, that is the tax form should fit on a sheet the size of a post card.
You have too many municipalities, not to mention states, that heavily depend on that sales tax. You would have to insure these parties that they would get their share of the tax pie. Now I don't know what the Constitution says about prohibiting states from keeping or scrapping their own local tax structures. From what I can tell, they can still keep them. But let us, for the sake of argument say that they somehow by some political miracle dump them. Local and state governments are going to start to look to drum up new revenue.
To simply rely on a national sales tax would be deemed too risky by some, and a lot of bonds issued are tagged to revenue flow. So, we could see the introduction of new income taxes in places like Florida. But you could also see the establishment of "smaller" taxes, here in Chicago we have a tax on bottled water. In fact to get a better idea, please look at this link from the City's revenue page.
Some states won't go for the income tax, some may go for property taxes. The list is endless, and it does not have to be an annual mandated tax. States looking to compete for business would go the fee route. Say, for example you have two states who both didn't have a state income tax. State A could simply adopt an income tax system of their choice, be it a flat tax or something more "progressive." While State B would simply opt to go the fee route. Now this would be interesting because one has to figure could a state survive without it's own income and sales tax structure? State B could have fees depending on services one uses (tolls, vehicle sticker, school fees, water usage, etc); they would also have a cushion from the collection of their share of the national sales tax (or VAT). Of course, poor people, unless theirs a subsidy program, could be hit by the fee scheme more than anyone else; yet they would be able to keep their own income.
But what about businesses? State A, also assuming they didn't implement various new fees, would seem simpler. Yet there is the income tax. Would a state's income tax (btw, are we eliminating the federal income tax system in your scenario, Nexus?) be significant rate wise? Whether it was a state that had one before or not, many state legislatures may want to opt to make up for the "lost" revenue from former sales taxes. And if there is an elimination of the federal income tax, they would realize that Uncle Sam's loss is their gain, hiking taxes to a certain point. So would State A be where business goes or State B that operates in fees? Meanwhile there is the new national sales tax.
It is not as if VAT is a new tax. It has been around decades and so has the potential impact on a not VAT economy trading with a VAT economy. The US should scrap all of its state based sales tax regimes and have a single national indirect tax structure - makes it simpler for business and brings balance to inter country trade.
But where are we today? Seems we have organized unions who frankly aren't making enough inroads to groups that really need representation...Professionals.
It kind of branched off into this identity politics, special interest thing and in terms of "generic worker" or "generic middle class", i.e. class by economic circumstance, not much focus seems to be there.
That's just me in terms of politics, but I find myself saying "where's the beef" and is one of the reasons for EP itself.
I suspect is like the U.S. middle class....there is just no lobbyists, groups to help them obtain policy in their interests.
Yeah, I thought that was really a bad indicator for it is these small business companies which employ the most people as well as diversify the economy (or should).
You are dead on. The United States doesn't even really collect, analyze macro economic data to formulate economic strategy, never mind consider crafting policy along the lines of a 5 yr., 10 yr. plan.
Guess who does have long term, in the national interest, strategies and corresponding policy? China, Japan, India, ........
I think we've been running on the WWII/Collapse of the British Empire spoils for a long time and it's all petered out.
Very insightful comment. I hope you consider creating an account and participating.
Here's a question then, in terms of overall wages, middle class income and employment, is it the U.S. who is #1 in decline?
Germany does have a better strategy but they too have been hit by global labor arbitrage. Maybe we can ignore E. Germany since they still have not recovered from the reunification of those two economies (W/E), but on a nation-by-nation basis, which workforce/middle class has suffered the most?
It would not surprise me that the answer is the United States but I don't have any statistics at hand.
We are the world's biggest debtor, and our chief creditor (China) has made it unmistakably clear that they intend to be paid back, in full, with un-inflated dollars.
Our response: Yes, master.
I think if that deduction is removed, so many state/local taxes are around property taxes and so there is an entire tax system (almost separate from income), devoted to property.
I think Graetz proposes massive simplification of the tax code in is proposal (which i listed a few valid criticisms I found above).
IWW, Wobblies documentary.
Reds is a little hollywood, a biography, more focused in on personal relationships, & I'm not sure how historically accurate it is, but more importantly, can I find it online, embeddable and not a copyright violation in doing so?
That's a key element to the Friday Night videos. ;)
check claims vs. those who actually received any assistance. States are denying assistance left and right.
Of most libertarian mechanisms.
This will either happen through a five year plan, or it will happen with a bottom-up revolution, starting with subscription farming and going up from there.
Hmm, now there's a thought of a way to do small-scale communism through distributist methods in a capitalist economy- subscription communes.
-------------------------------------
Maximum jobs, not maximum profits.
because we have been losing jobs at a record pace for the last 18 months or so that people receiving unemployment insurance are rolling off the benefits. Basically no longer being counted as unemployed nor receiving any support.
Perhaps we should check the welfare rolls?
I've got extremely complex taxes. And I can't say that I've spent more than $300 to do my taxes in the last 10 years.
I'd personally like to see my tax form get *MORE* complex- use computers and websites to move budgetary authority from Congress and give it directly to the taxpayer.
We very well may likely see some different values expressed in the budget that way. And for those who like their taxes less complex, we can always make the automatic entry in "Allocated by Congress" to be equal to taxes paid, and need to be reduced manually to allocate to other uses.
I'm also for a top bracket of 95% with 100% deduction for household and business payroll. The reason? We had that in the 1950s and it caused the greatest expansion of the middle class the world has ever seen.
-------------------------------------
Maximum jobs, not maximum profits.
Paul Volker and others are suggesting that full employment may be lower going forward - unemployment higher. PIMCO is suggesting a "new" normal for economic growth much lower. This all suggests a much lower living standard.
Seebert's point about the fickleness of export-led growth is worth pondering. Just ask the Chinese, Koreans, Japanese and others whose overseas markets have taken a big hit. But the US case is fundamentally different. We have an enormous trade deficit, still running in excess of $600 billion annually. That means that our initial gains can be at the expense of imports. Imports of what? Energy makes up 30 - 40 percent of the deficit, and we can produce all of that in this country. Autos and parts make up another big chunk, and we ("Big" 3 plus transplants) can produce those here as well. Many of the manufactured goods imported from China (which accounts for most of that category of imports) were onceand could again be produced here.
Where we should aim for a long-term export market is in higher-end capital goods, the sort of product needed in many countries around the world. The Germans have used this strategy quite successfully for a long time, despite the strength of the D-mark and the euro.
waiting in the wings. Think I'll start cutting down some trees to heat the old home. Oh but wait...I think there is some local law against it. darn.
In my State electric rate regulation ends around the same time that they want cap and trade to be cook'in. Ouch!
Medical bills underlie 60 percent of U.S. bankruptcies: study
This must be a budgetary and legislative priority.
I know it's early, but I won't get a chance this Saturday. How about the movie Reds? No, not because the Communist element, but early in the movie and throughout the rest, the main character is promoting the IWW. It's mentioned in this wonderful diary post. Thought it was relevant.
--------------------------------------------
www.venomopolis.com
From what I've read, you appear not to be a fan of the flat tax, ok I get it. But like you mentioned about those 1040s, something has to be done. You need to simplify it, so much time and money is spent on just doing our taxes. It doesn't have to be that way. The complexity of the code is simply a massive opportunity for some slick bastard to "game the system" and not pay or underpay. Now what about say a four-tiered tax structure for personal income tax? For corporate tax, you could have something more complex that would fit with whatever industrial policy one wishes to establish.
Personal Income Tax
Those earning between $20-50k would pay 20% ( it could be more or less, I'm just using 20 for this example). The next tier would be $51-250k, which would be taxed at say 25%. The third level, those earning $250-999,999k would pay 25%. The final income bracket, those earning $1million or more would pay 30%.
Those below the first tier would be able to apply for 100% rebate from any national sales tax/VAT; they would also qualify for mortgage. People in the first tier would qualify for a 25% rebate on any national sales tax/VAT; and would qualify for mortgage deduction. Those in the third and fourth tier would not qualify for any rebate, but would for mortgage deduction.
Traditional personal deductions should be curtailed. I picked the mortgage one because it is one of the biggest investments one makes. If you're a renter, it should replace the mortgage one with one that is a percentage of your rent. Deductions for dependents, if such a deduction were to remain, should only apply to one tier. Essentially, you want to have the post card test, that is the tax form should fit on a sheet the size of a post card.
--------------------------------------------
www.venomopolis.com
You have too many municipalities, not to mention states, that heavily depend on that sales tax. You would have to insure these parties that they would get their share of the tax pie. Now I don't know what the Constitution says about prohibiting states from keeping or scrapping their own local tax structures. From what I can tell, they can still keep them. But let us, for the sake of argument say that they somehow by some political miracle dump them. Local and state governments are going to start to look to drum up new revenue.
To simply rely on a national sales tax would be deemed too risky by some, and a lot of bonds issued are tagged to revenue flow. So, we could see the introduction of new income taxes in places like Florida. But you could also see the establishment of "smaller" taxes, here in Chicago we have a tax on bottled water. In fact to get a better idea, please look at this link from the City's revenue page.
Some states won't go for the income tax, some may go for property taxes. The list is endless, and it does not have to be an annual mandated tax. States looking to compete for business would go the fee route. Say, for example you have two states who both didn't have a state income tax. State A could simply adopt an income tax system of their choice, be it a flat tax or something more "progressive." While State B would simply opt to go the fee route. Now this would be interesting because one has to figure could a state survive without it's own income and sales tax structure? State B could have fees depending on services one uses (tolls, vehicle sticker, school fees, water usage, etc); they would also have a cushion from the collection of their share of the national sales tax (or VAT). Of course, poor people, unless theirs a subsidy program, could be hit by the fee scheme more than anyone else; yet they would be able to keep their own income.
But what about businesses? State A, also assuming they didn't implement various new fees, would seem simpler. Yet there is the income tax. Would a state's income tax (btw, are we eliminating the federal income tax system in your scenario, Nexus?) be significant rate wise? Whether it was a state that had one before or not, many state legislatures may want to opt to make up for the "lost" revenue from former sales taxes. And if there is an elimination of the federal income tax, they would realize that Uncle Sam's loss is their gain, hiking taxes to a certain point. So would State A be where business goes or State B that operates in fees? Meanwhile there is the new national sales tax.
-------------------------------------------- www.venomopolis.com
It is not as if VAT is a new tax. It has been around decades and so has the potential impact on a not VAT economy trading with a VAT economy. The US should scrap all of its state based sales tax regimes and have a single national indirect tax structure - makes it simpler for business and brings balance to inter country trade.
But where are we today? Seems we have organized unions who frankly aren't making enough inroads to groups that really need representation...Professionals.
It kind of branched off into this identity politics, special interest thing and in terms of "generic worker" or "generic middle class", i.e. class by economic circumstance, not much focus seems to be there.
That's just me in terms of politics, but I find myself saying "where's the beef" and is one of the reasons for EP itself.
I suspect is like the U.S. middle class....there is just no lobbyists, groups to help them obtain policy in their interests.
Yeah, I thought that was really a bad indicator for it is these small business companies which employ the most people as well as diversify the economy (or should).
You are dead on. The United States doesn't even really collect, analyze macro economic data to formulate economic strategy, never mind consider crafting policy along the lines of a 5 yr., 10 yr. plan.
Guess who does have long term, in the national interest, strategies and corresponding policy? China, Japan, India, ........
I think we've been running on the WWII/Collapse of the British Empire spoils for a long time and it's all petered out.
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