"Tax bills in 2009 at lowest level since 1950"

#26
#26
last months cpi number scared the crap out of me. no way we are going to see inflation anytime soon with wage deflation in this country.
 
#27
#27
Velo Vol said:
The USA Today today:



Yet another example of how--especially on talk radio--rhetoric and reality are often miles apart.
Click to expand...

This doesn't necessarily require a complex answer beyond what our tax experts have already made.

We have a progressive tax code. When income falls, revenues fall but the % taken also falls. The more of a taxpayer's money is confiscated at the highest marginal rate, the higher his net rate of taxation is. When he makes less money, more is taxed at lower rates... and thus a lower %.

This is what makes supply side economics sound. Cut the marginal rates and there's an immediate supply of capital in the market place to fuel expansion... to include the expansion of payrolls.

Our problem is NOT too little taxation... it is TOO much spending compared to the real wealth production.

Real wealth comes when you gather raw materials or else improve them. Many other service type jobs are necessary... but our loss of manufacturing wealth creation is crippling.

Consumer side, Keynesian, economics fails worst with free trade. We are borrowing and spending only to see that wealth transferred to foreign economies where savings rates and manufacturing/mining/farming aggregate wealth production is skewed the other way.
 
#28
#28
droski said:
last months cpi number scared the crap out of me. no way we are going to see inflation anytime soon with wage deflation in this country.
Click to expand...

If the gov't is split after Nov, the economy will probably take off. I work in a "materials" industry that sees these signs very early for various reasons.
 
#29
#29
sjt18 said:
If the gov't is split after Nov, the economy will probably take off. I work in a "materials" industry that sees these signs very early for various reasons.
Click to expand...

i've seen teh pickup in the numbers, but with inventory numbers this low i can't determine how much of that is just inventory restocking rather than real growth. still significantly below 07 levels. any insight?
 
#30
#30
Ok - I had zero life changes between 2008 and 2009. My job stayed the same, I made the exact same amount of money.

However, this year I got a MUCH bigger refund check. What caused that??
 
#31
#31
TruthIsOutThere said:
Ok - I had zero life changes between 2008 and 2009. My job stayed the same, I made the exact same amount of money.

However, this year I got a MUCH bigger refund check. What caused that??
Click to expand...

Do you itemize?

I would also have you define "much".

There coudl be several reasons.
 
Last edited:
#33
#33
making work pay credit, homebuyer's tax credit, tuition tax credit

tax credits and incentives are not tax cuts
 
#35
#35
droski said:
i've seen teh pickup in the numbers, but with inventory numbers this low i can't determine how much of that is just inventory restocking rather than real growth. still significantly below 07 levels. any insight?
Click to expand...

I don't think we're looking at that kind of recovery at this point. The weight of debt is just too great. But there is some serious momentum building.

There appears to be real, non-Chinese demand in steel now. It isn't as robust as pre-recession but most of the analysts I've seen believe that de-stocking is well past and that the prices that are being commanded now are an indication of real demand strength.

Steel of course is a fundamental commodity in growth.

The Chinese are going to pour some water on their over heating economy. That should help clear things up some too.
 
#37
#37
sjt18 said:
The ONLY thing buoying the dollar from a free fall right now is the mess in Europe... their socialism and pervading sense of entitlement is more advanced than ours.
Click to expand...

No it isn't. Lack of demand is currently precluding inflation, which shoud have been the result our our fiscal and monetary policy. Sans demand for bucks, nothing the fed does impacts pricing. Given that rpicimg of currencies is relative, it will also always be somewhat about foreign currencies, at least until inflation makes them worthless.
Posted via VolNation Mobile
 
#45
#45
BigPapaVol said:
No it isn't. Lack of demand is currently precluding inflation, which shoud have been the result our our fiscal and monetary policy. Sans demand for bucks, nothing the fed does impacts pricing. Given that rpicimg of currencies is relative, it will also always be somewhat about foreign currencies, at least until inflation makes them worthless.
Posted via VolNation Mobile
Click to expand...

Compare the dollar to a predictor commodity like copper. An over supply of $'s should drive copper through the roof. It hasn't. Copper has given back some of its YTD gains which is the opposite of what it would do if not for the Euro's instability.

The last President with the philosophy of Obama was Carter. He gave us stagflation. Low growth with high inflation. One principle cause is an oversupply of money. Obama is taking us there... or worse.

For all his other flaws and in spite of taking credit for the economic boom created by the technology revolution and Y2K scare, Clinton wisely pursued a strong dollar policy. That along with a split gov't that couldn't do much harm gave us a pretty nice decade economically.

BTW, the excessive capital spending running up to Y2K contributed to what liberals called the "Bush recession". He and the congressional GOP inherited those conditions... cut taxes... and the economy grew out of it in spite of the bump in the road created by 9/11.

Obama and the Dems also inherited an economy on a down cycle. They spent money like mad and have proposed all sorts of gov't expansion. After a year of those policies (two if you count Bush's last year when he capitulated to Keynesian ideas), we are stuck in a "recovery" in which most of the new jobs are being created by gov't. WS is doing OK... trading those deficit spending $... many of which are ending up in China or another developing industrial power.

The unforgiveable sin of Bush and the GOP is that they did not cut gov't spending when they had the chance.
 
Last edited:
#48
#48
droski said:
hmmmmmm
Click to expand...

he needs to get his money in some index stuff now and get that 12% bump.

The massive piles of sovereign debt are scaring the shiz out of investors. It's hard to see today what might happen with it, but double dip is more likely than a screaming recovery right now. People know the gov't is going to have to come after the money at some point.
 
#49
#49
sadly i'm just now breaking even on my ultra shorts so i can't really talk too much crap.

the problem in europe and even in the US is that if they are going to do what needs to be done (i.e. cut wages and employment in the public sector) it's going to further tank the economy and tax receipts.
 
New posts
You must log in or register to reply here.

VN Store



Back
Top