Government's Promised "Tax Cuts"

dollardaze · #1 08-27-2008, 07:16 PM

Long-term tax reductions do not truly exist for our society as a whole. Taxes that must be paid - federal, state and local - are at one of the highest levels they have been for decades, despite all the tax "rollbacks" of the Reagan and Bush years in office.

Changes in tax laws do matter for the individuals for the short term, but the fact is that reductions in taxes in one area of our lives are made up by raising the tax in another area.

There are other factors at work keeping our taxes up. It has been said that a tax cut is not a tax cut if it is accompanied by a larger rise in government spending than in prices. If we go by this standard, there have not been any real federal tax reductions, in the past 50 years, as all the promised tax cuts have been accompanied by a rise in federal spending which is higher than prices.

One expert on the matter of taxes said that the real cost of government is measured by what the government spends, not by the receipts that are labeled taxes. The goods and services it buys are not available for other uses.

The government is expecting to spend more that $3.1 trillion in 2008, up from $2.3 trillion in 2003 - this according to the Bureau of Economic Analysis. That $800 billion increase is much greater than the rise in prices of the same time frame. Even though much of the increase wasn't financed through funds that were labeled taxes, the taxpayer ends up making up the difference - with taxes that are paid indirectly.

Until the officials we elect to government office tackle the spending aspect of government, we can say that "tax cut" is nothing more than words we see in the news. Of course, as stated above, some tax cuts do help some people by lessening their burden, but until we see real government spending decreased, those tax cuts just mean that those tax cuts are made up by other taxpayers.

Until the government puts itself on a true "budget", instead of simply spending all the money it can get its hands on in all the ways of the past, we will never have a true "tax cut". The chances of this seems rather unlikely, if past behavior is any indicator.

pennypinch · #2 08-30-2008, 02:04 AM

Nope, I don't see us getting any "real" tax cuts anytime in the near future or in my lifetime for that matter. As you said, the government is spending crazily, and on some things that is such a waste. Who pays for it? We do! I am sick and tired of hearing candidates talk about how they are going to cut back our taxes, it is nonsense and we all know it!

Empty Wallet · #3 09-03-2008, 08:56 PM

But yet, they still get nominated and voted for..???

how stupid are we?? we should just once..boycott elections if we have crap to choose from...and just not settle for anyone.

dollardaze · #4 09-03-2008, 09:19 PM

I have boycotted a few elections, EmptyWallet, when I felt that neither choice was the right choice.......I've also written a name or two on a ballot, but unless we, as a country would do this, it doesn't help at all. Someone always gets elected.

I've also written to legislators asking for some changes to be made, but to no avail......most of the time you get a form letter with a signature stamped on the bottom, or no reply at all........it's very aggravating.

dimetime · #5 09-04-2008, 05:18 AM

I say we all nominate Dollardaze as president. I have a feeling that she sure would clean things up and fast. LOL, and Emptywallet or Pennypinch can be the vice president. You would have my vote!

Just let me know if this happens so I can move out the country fast. I will return after all the dust settles from all the cleaning up!