Hi,=20
Making a generalized statement like below is meaningless.=20
< Every tax cut in history has resulted in increased revenue to the
< Federal Government. So, we will actually be lowering the debt.
There are far two many variable involved for such a statement. =
Consider the following:=20
The Federal Reserve System creates money through the Federal Reserve =
Banks, which loan money to the other banks at specified interest rates. =
To a bank money is its inventory. The regular banks then sell it =
inventory (e.g. money) to corporations and individual seeking financing. =
If the loan is sold, the borrower repaid the loan over time including =
interest.=20
This above scenario puts money into the economy, but the amount of =
money in the economy if a function of how much the money turns over =
through exchanging of goods and services.=20
When times are good, jobs are plentiful and people feel safe to spend =
their money on good and services, which keep the GDP up. This is good. =
When times are bad, people defer spending except for necessities. This =
is not good.
We can't have a complete equation without throwing in the government's =
effect on money, which is the government claim to our GNP. I suppose the =
government has an account with the Central Federal Reserve Bank in which =
it deposits all taxes. If good budgeting practices were uses, the money =
would be collected from the taxpayers, deposited into Uncle Sam's =
account, and then spend during the year to provide the services that are =
best suited to government, like our national defense. At the end of the =
year Uncle Sam's account would be reduced back to zero a balance (e.g. =
an exactly balance budget).=20
However, when Uncle Sam can not live within his mean, he continues to =
spend beyond the zero balance which create a debt owed back to his =
account (e.g. at some point we will be asked to pay this back, or Uncle =
Sam will be asked to reduce spending until his account is back to zero). =
Uncle Sam is the only person allowed to create a bank account that run =
into the red territory, as anyone else doing so can be placed in prison. =
When Uncle Sam runs deficit, he reduces the value of the dollar held in =
the public sector by putting more money into the economy while =
simultaneously consuming GNP (e.g. the great hidden tax).=20
As you can see there are many variables when talking about economics =
and it would take quite a sophisticated simultaneous algebraic or =
calculus equation to make sense of it all. And then there is the =
psychological mode of the country that also messes with the equation.=20
Alan Greenspand has a lot of control of the money supply by setting =
interest rates at which other bank can barrow fund. However, in a =
stagnate economy, (e.g. an economy lacking normal growth) about the only =
loan being made are one to keep companies going, not loans to start new =
business.=20
Boy, it must be great to be privileged.=20
LelandJ
----- Original Message -----=20
From: Chet Gardiner=20
To: ProFox Email List=20
Sent: Thursday, June 12, 2003 2:41 PM
Subject: Re: [OT] Tony Small's Tax Cut Estimator
Here are some of his sources:
http://www.rushlimbaugh.com/home/today.guest.html
http://www.freerepublic.com/
and for the "left wing" point of view:
http://www.foxnews.com/oreilly/
----- Original Message -----=20
From: "Stephen Russell" <srussell /AT/ lotmate DO.T com>
To: "'ProFox Email List'" <profox@leafe.com>
Sent: Thursday, June 12, 2003 11:18 AM
Subject: RE: [OT] Tony Small's Tax Cut Estimator
> Where do you come up with this information?
>=20
> Stephen Russell
> S.R. & Associates
> Memphis TN 38115
> 901.246-0159
>=20
>=20
> -----Original Message-----
> From: profox-bounces /AT/ leafe DO.T com [mailto:profox-bounces@leafe.com]On
> Behalf Of Michael Madigan
> Sent: Thursday, June 12, 2003 8:14 AM
> To: ProFox Email List
> Subject: Re: [OT] Tony Small's Tax Cut Estimator
>=20
>=20
> Every tax cut in history has resulted in increased revenue to the
> Federal Government. So, we will actually be lowering the debt.
>=20
> --- "Leland F. Jackson, CPA" <smvfp /AT/ mail DO.T smvfp.com> wrote:
> > Hi Michael,
> >
> > Remember, the payment is coming from deficit spending which
> > creates a debt that we all owe back to ourselfs. You might end
> > up repaying the advance many times over, due to compounding
> > interest. Your tax refund could easily be deducted from funds
> > you have paid social security by either a reducted benefit or
> > no benefit. Enjoy.
> >
> > LelandJ
>=20
>=20
> =3D=3D=3D=3D=3D
> "I triple guarantee you, there are no American soldiers in Baghdad."
> Muhammed Saeed al-Sahaf (Baghdad Bob)
>=20
[excessive quoting removed by server]
©2003 Leland F. Jackson, CPA |
