tag:blogger.com,1999:blog-7141976304017561781.post3072710567101689039..comments2023-07-31T14:54:05.106-04:00Comments on Deep in sight...: US ECONOMY 101: DEFICIT, DEBT & DOUBTDeep Parmarhttp://www.blogger.com/profile/03013850663255434212noreply@blogger.comBlogger3125tag:blogger.com,1999:blog-7141976304017561781.post-81035130203206076492022-04-05T10:11:58.337-04:002022-04-05T10:11:58.337-04:00This comment has been removed by a blog administrator.callisbabikhttps://www.blogger.com/profile/04033666980418534885noreply@blogger.comtag:blogger.com,1999:blog-7141976304017561781.post-47317429936681895842011-09-11T23:29:22.980-04:002011-09-11T23:29:22.980-04:00Thanks, Shari. My goal was to raise some awarenes...Thanks, Shari. My goal was to raise some awareness on this issue and your questions certainly take this discussion to the next level.<br /><br />You are right in saying that the surplus was already dwindled away by 2001. I haven't looked closely enough to determine whether it was entirely due to corporate tax breaks or partly also due to increased spending.<br /><br />If corporate taxes are raised, companies will try to maintain profits by trimming benefits, jobs, etc. Keep in mind that corporations are expected to post profits that improve year over year. Failure to do so leads to depressed stock prices and that in turn hurts the average investor as well (401-k, etc.). All in all, it won't be easy for sure.<br /><br />I was planning on looking at taxes collected by the government and analyze how much is collected from the top earners and so on. But I felt that it would have to be another post. I will try to see what I can come up with. Perhaps I can find something on the effects of restoring the tax-breaks.<br /><br />The tax-breaks could have had a favorable impact if our economy was not extended beyond our borders. When goods production and services are outsourced, they might no longer be part of the economy that is being stimulated. The breaks lose their intended purpose when outsourced goods and services rely on incentives from other economies viz. China.<br /><br />Thanks again for your kind words and feel free to share! If I can inform one more person about this then my purpose is served.Deep Parmarhttps://www.blogger.com/profile/03013850663255434212noreply@blogger.comtag:blogger.com,1999:blog-7141976304017561781.post-57237402427244276812011-09-11T12:15:23.909-04:002011-09-11T12:15:23.909-04:00Deep, thanks so much for this cogent and thorough ...Deep, thanks so much for this cogent and thorough analysis, it really made a lot of things clear to me. <br /><br />One thing I have never been able to get a clear answer to is: what happened to the Clinton "surplus?" While the "War on Terror" has been cited as a factor in the increase of the deficit, what people seem to forget is that on September 10, 2001 the surplus had not only disappeared but we were again into deficit spending. As far as I can see on your graphs there is a correlation to the decrease in receipts in corporate taxes for the same time.Am I reading your info correctly on that?<br /><br />While you are being very diplomatic towards your conclusion that "none of these choices are easy to swallow" I tend to disagree - what would happen if the corporate taxes were restored to pre-Bush levels? And, what would happen if the income tax breaks for the uber-wealthy (the Paris Hilton bill) were rolled back to pre-Bush levels? Do you have any projections on this?<br /><br />The mantra for corporate tax breaks has been that this money increases domestic production of jobs which increases personal income tax receipt, and excise receipt while lowering unemployment outlay; yet, this clearly has not happened.<br /><br />The mantra for personal income tax breaks has been that this increased domestic spending creating a robust economy; this hasn't seem to have happened either.<br /><br />It's gotten to the point where some candidates (and voters) seem to think that tax breaks cure cancer....<br /><br />In your opinion, what would be the effects rolling back the breaks and restoring pre-Bush levels?<br /><br />thanks, Shari<br />P.S. Truly excellent post! I'm passing it along, thanks again!Anonymousnoreply@blogger.com