Budget Cuts Don't offset Tax Cuts

[Speelurs]

Reported on Yahoo. My question is what is there to offset since Tax Revenues are at an all-time high? The Tax Cuts spurred growth which inturn increased tax receipts.


http://news.yahoo.com/s/csm/20051227/ts_csm/adeficit

[Nbadan]

Reported on Yahoo. My question is what is there to offset since Tax Revenues are at an all-time high? The Tax Cuts spurred growth which inturn increased tax receipts.

Tax revenues are at a all time high, however unfortunately so is spending. Republicans like to point to the percentage of our debt compared to a percentage of our GDP, which traditionally has been a decent measure of a countries debt, but we are talking very large numbers here. Our nation's debt stands at around 7 trillion dollars. That's money we owe to ourselfs, but money we also owe to citizens of other countries.

Countries like impoverished China will keep buying our debt and financing our housing bubble as long as it financially suits them, but that is capital that could be used to reform China, improve working conditions, pay, and benefits for Chinese workers, and maybe, just maybe lead to real Democratic reforms.

You hear that huge sucking sound? That's the U.S. sucking up all the free capital in the world. Who wins? We do. Who loses? Everyone else. For how long? That's the magic question.

[2centsworth]

Tax revenues are at a all time high, however unfortunately so is spending. Republicans like to point to the percentage of our debt compared to a percentage of our GDP, which traditionally has been a decent measure of a countries debt, but we are talking very large numbers here. Our nation's debt stands at around 7 trillion dollars. That's money we owe to ourselfs, but money we also owe to citizens of other countries.

Countries like impoverished China will keep buying our debt and financing our housing bubble as long as it financially suits them, but that is capital that could be used to reform China, improve working conditions, pay, and benefits for Chinese workers, and maybe, just maybe lead to real Democratic reforms.

You hear that huge sucking sound? That's the U.S. sucking up all the free capital in the world. Who wins? We do. Who loses? Everyone else. For how long? That's the magic question.

I agree our Spending is out of freakin control. However, without the tax cuts our national debt would be larger. I'm an economic pessimist because neither party will do what it takes to avoid backruptcy which is to cut spending on social services by 50%. Republicans think they can help the economy out grow the problem by cutting taxes while ignoring spending. The democrats think raising taxes is the solution which tells me they're clueless. We're screwed!

[Nbadan]

to cut spending on social services by 50%

Why stop at just cutting social services? Military spending is the largest boondoogle on the nation's budget. We spend more than 10x's our closest compe or, China, on military spending. Do we really need all this new military hardware for the Navy to fight a land-based insurgent war? Were is the body armour for the troops? Where were the stryker vehicles during the early part of the Iraq war?

[2centsworth]

Why stop at just cutting social services? Military spending is the largest boondoogle on the nation's budget

That's a common misperception. Straight from the Comptroller General http://www.gao.gov/cghome/aarp07212005/img1.html.

It's Social Security, Medicaid, and Medicare that's going to wipe us out. It sounds insensitive, but it's the truth.

[Cant_Be_Faded]

nbadan is the . He probably has the highest come correct ratio of any political poster since MannyIsGod c.nov 2004-april 2005

[2centsworth]

nbadan is the . He probably has the highest come correct ratio of any political poster since MannyIsGod c.nov 2004-april 2005

Please elaborate. He was come correct how?

[Nbadan]

That's a common misperception. Straight from the Comptroller General http://www.gao.gov/cghome/aarp07212005/img1.html.

It's Social Security, Medicaid, and Medicare that's going to wipe us out. It sounds insensitive, but it's the truth.

I think your graphs reflect the effects of the rapidly aging baby-boomers on the social security and the medicare systems. It's not like the poor are profiting off of being poor as might be suggested, it's that a large chunk of people are getting old at the same time and many of them depend on the Social Security system to help put food on the table, and on medicare/medicade when they get sick. What do you suggest we do with the old and poor who haven't saved enough to live on after they are forced to retire because of illness?

[Nbadan]

It's Social Security, Medicaid, and Medicare that's going to wipe us out. It sounds insensitive, but it's the truth.

Eh, look, it's not too late, but we have to start cutting everything now. There is no logical reason to be running $400 billion dollar yearly deficits during expansion periods, even during a insurgent war. Defense spending is out of control, but Rummy was supposed to be the reformer who was gonna go in there and straighten every thing out, instead the corruption, graft, and cronyism in the DOD has only gotten worse. We need a real reformer leading the DOD who doesn’t have a stake in the game he is in charge of care-taking.

[2centsworth]

I think your graphs reflect the effects of the rapidly aging baby-boomers on the social security and the medicare systems. It's not like the poor are profiting off of being poor as might be suggested, it's that a large chunk of people are getting old at the same time and many of them depend on the Social Security system to help put food on the table, and on medicare/medicade when they get sick. What do you suggest we do with the old and poor who haven't saved enough to live on after they are forced to retire because of illness?

The government is wasteful. Spend the money on financial education for the masses and divert all of the money into private enterprise. Will never happen, so that's why I'm a pessimist. The obligations for everything mentioned above will eventually break us, at least that's what the numbers suggest.

[Nbadan]

The government is wasteful. Spend the money on financial education for the masses and divert all of the money into private enterprise. Will never happen, so that's why I'm a pessimist. The obligations for everything mentioned above will eventually break us, at least that's what the numbers suggest.

There is absolutely no reason to believe that private enterprise will educate our kids better than public schools. It will, however, aid parents who want prayer in schools and who want to segregate rich kids from the poor kids, white kids from the mexican and black kids, etc..etc...etc....

[scott]

There is absolutely no reason to believe that private enterprise will educate our kids better than public schools. It will, however, aid parents who want prayer in schools and who want to segregate rich kids from the poor kids, white kids from the mexican and black kids, etc..etc...etc....

Yes, Dan, there is. I recommend the following book (for the 390432th time in this forum )

http://www.amazon.com/gp/product/081...books&v=glance

[Cant_Be_Faded]

11/22/2005
I Wore A Pink Shirt Today

And I liked it.

[Nbadan]

Yes, Dan, there is. I recommend the following book (for the 390432th time in this forum )

I know your a busy guy there Scott, by why don't you give us all a short synapsis of the author's main points.

[Nbadan]

Another day, and more cronyism on display in the DOD...

THE ASSOCIATED PRESS

WASHINGTON -- Navy Secretary Gordon England -- who has also been serving as the acting deputy defense secretary -- gave up his Navy post Thursday, clearing the way for a new naval leader.

The move will allow Donald Winter to be sworn in as Navy secretary next week.

... Two senators have blocked England's confirmation as deputy defense secretary, the Pentagon's second-highest position, creating a logjam in the department's hierarchy.

But senators indicated last month that Bush will bypass the Senate and install England as deputy secretary within the next few months, using what is known as a recess appointment. Last week, Bush issued an order outlining a new Defense Department line of succession.

SeattlePI

England is a PNACer who has been involved in some really costly DOD contracts such as one with UNISYS that is costing the taxpayers an arm and a leg.

[gtownspur]

hey where's all my qoutes saying how tax cuts would spur tax revenue??

I thought that i was stupid for saying that, but now everyone is admitting that tax cuts boost revenue, even NBAdan!!

WHere's RAndom Guy? He needs to set us all straight.

[SA210]

^^^ what about your quote about the homeless don't get any kind of government assistance at all and ridding these services wouldn't affect them.

[gtownspur]

^^^ what about your quote about the homeless don't get any kind of government assistance at all and ridding these services wouldn't affect them.

THey generally dont. That's why they're homeless. If you're getting govt assistance and your still homeless, then how much of a up can you be?
Spare everyone the nonsense. The only people who believe that a majority of homeless people are getting assistance is you.

If the homeless recieve public housing, then they wouldn't be homeless now would they.

If they recieved food stamps, then why the do you have to feed them.

in that case most of the homeless would just beg for a uhaual box and a blanket cuz they allready have the wic cheese and king vitamin cereal.


and if they happened to be getting govt assistance and they are still homeless, then obviously it's not working.

So you and blow my left nut.

[SA210]

So you and blow my left nut.

town, isn't that the pickup line u used on men on New Years? If you can take a u can take a joke.

[scott]

I know your a busy guy there Scott, by why don't you give us all a short synapsis of the author's main points.

Merrifield lays the frame work for a market-based education system, the reasons why limited school choice as it exists today (like in Milwaukee) doesn't work, the problems with a state-based system in general (the non-existent incentive structure for both those being taught and those doing the teaching - and I don't necessarily mean monetarily), and so on. I believe on his website there are some excerpts from his book. UTSA is lucky to have Merrifield on the Economics faculty.

http://faculty.business.utsa.edu/jmerrifi/

[SouthernFried]

I believe Military spending has been the only large govt program that has actually received "real" cuts (as opposed to cutting the rate of growth) in the last 30 yrs.

Anyone looking at the budget knows, that social spending, most of it untouchable...is what's creating the debt in the country. And, with automatic increases built in by law...it will also be our biggest problem in the foreseeable future. En lements are right now something like 65% of the budget...and increasing.

Military spending is around 15% of our budget...while Social Security, Medicare/medicaid alone, account for 44%.

Don't deal with this..you don't deal with our budget shortfalls.

[xrayzebra]

^^^O-Boy are you in trouble with SA210. Duck he will be coming at you kickin and
screaming. But you are right.

[SA210]

Bullcrap, they are cuts, no matter what u choose to call them.

[Nbadan]

Merrifield lays the frame work for a market-based education system, the reasons why limited school choice as it exists today (like in Milwaukee) doesn't work, the problems with a state-based system in general (the non-existent incentive structure for both those being taught and those doing the teaching - and I don't necessarily mean monetarily), and so on. I believe on his website there are some excerpts from his book. UTSA is lucky to have Merrifield on the Economics faculty.

http://faculty.business.utsa.edu/jmerrifi/

Yes, I've read through Mr Merrifield's website and the meat of the matter seems to be that he thinks that school districts are inefficient monopolies, here is a telling sentence...

Dynamic inefficiency - insufficient improvement - is evident in the school system's failure to systematically pursue research and development, and implement innovations. In addition, while change in 'public' schools is undeniable, technological backwardness is the norm, and there is complacency about success and failure. There is no discernible propensity to identify and spread effective practices, or to root out unproductive practices and prac ioners. According to a Dale Ballou and Michael Podgursky study, 'public' schools give little weight to the quality of teachers’ credentials. Unproductive teachers are only rarely terminated.

Yes, I'm just wondering how many years Mr. Merrifield spent teaching in a K-12 class-room in Texas testing these hypothesis of his, or did he draw his conclusions with strictly empherical evidence and heresay? Just from what is on the site, he sure seems to base many of his conclusions on hypothetical theory.

There are, as Merrifield terms,'insufficient improvement' in our state's schools, but I don't believe it's from a lack of trying to find the funding by the schools districts boards, I believe it has more to do with Texas voters neglecting to properly fund education for too long, and forcing schools to work longer with obsolete teaching methodologies and materials. Texas schools continue to grow at a enormous rate, so when school districts manage to get a bond package passed, (and must spend millions in lobbying to do so by the way) they still must budget between improving the schools that they have and building newer schools in booming areas that will not be obsolete before taxpayers finish paying to them.

Still, given the funding challenges in TX, most schools in SA are technologically well-connected. The internet, a updated TV system that teachers can actively utilize in their lesson-plans, grade-speed - a school intranet where teachers and parents can keep up with student grades and performance are standard in most districts. There are even computer rooms for the students, mostly filled with corporate donated computers, and yes there are technological inequalities in our city schools, but even the poorer districts have most of these features. What else does Mr. Merrifield expect? How does he honestly believe that private enterprise can do better?

[Nbadan]

According to a Dale Ballou and Michael Podgursky study, 'public' schools give little weight to the quality of teachers’ credentials. Unproductive teachers are only rarely terminated.

Eh, yeah right, try getting hired by the NE school district without being certified in and able to teach ESL, without actively participating in PTA, and teachers must attend a minimum number of work-shops and training seminars on their own time and during the summer. Unproductive teachers are rarely terminated, but only because most of them can't handle the 10-12 hour days it takes to be a good teacher and quit on their own.