WSJ on the amazing shrinking deficit

I respond only that, with Oliver Wendell Holmes, a Republican, I believe that taxes are the price we pay for a free society. And what makes me crazy about some people -- but not you, daveevans -- is that they'll take the "they're al swine anyway" approach and then wonder why the political system is not responsive to their concerns.
A republic, if you can keep it.

 

Household wealth refers to net worth, which can also include asset ownership. That's not to say I think the editorial should have ignored the negative savings rate, but the way you express it above is not the correct way to put it.

 

Nice post, F_B. I totally agree with the OWH point, and I understand the need for taxes and don't mind paying them. I just think what I pay at this point is adequate. And I don't think the politicians are all swine. I just think money is going to be spent in Washington -- by both major parties and anybody else who can get their hands on it -- regardless of how large or small the deficit is, and a lot of it will be spent on unnecessary stuff.

So if that's going to be the case, if me and my family can manage to keep a little more of our earnings, sock some of it away appropriately and maybe even be able to have a little more fun with some disposable income, I'll take it.

 

Think about all the people who have been able to own homes and the net worth that has created in the latest housing boom. I have friends in the D.C. area who aren't necessarily wallet rich, but they have considerable equity in their homes and have increased their net worth. If they choose, they can take money out of that equity although that increases their long term debt. The downside of the rising home prices is the increase in property taxes.

 

No, Joe, that's not quite right. Because of the tax cuts, tax revenues have actually grown by leaps and bounds. This ain't a zero-sum game. As Kennedy and Reagan proved before Dubya, tax cuts fuel economic growth. It's a paradox, but an important lesson to remember.

The problem's not the tax cuts. It's the spending discipline. Remember, Congress spent away the Social Security Trust Fund because it couldn't balance a budget — and now, Social Security isn't just a partial pyramid scheme, it IS a pyramid scheme, bound for collapse. Never mind that there are so many unnecessary government programs no one has the will to cut loose.

 

Fenian can we assume that you sent back your $300 tax rebate check as your small way of helping to cut the deficit.

If so - a hearty thank you.

 

$234 BILLION for the wars in Iraq and Afghanistan in fiscal '07 and '08.

Now that's money well-spent.

 

As I understand it the tax breaks only work if they're reinvested in the economy, so I used my check toward a flat-screen so my money could trickle down to Best Buy. I'm pretty sure Best Buy put my money toward hiring another sales clerk. Made me proud to be a 'merican.

 

Amen Cranberry . exactly why I bought by Hummer. Wanted to help the economy. Took advantage of the big investment tax credit knowing that I was saving a few jobs at the Hummer plant in South Bend.

The thing is based on the numbers since 2001 the ecomnomy did get moving.

 

Compensating for something, Boom?

 

It's a paradox because it's not true, unless you believe in the credit-card theory of the federal budget. And remember that Kennedy's tax-cuts, beloved of conservatives now, cut the top rate down to a level that would cause conservatives to scream if we lifted it back up there now.

 

Yes - I am Irish and have a small dick. Driving a big Hummer makes me feel better.