Posted on 01/22/2017 7:13:32 PM PST by Tolerance Sucks Rocks
Or so this author and economist seem to say.
IMO, $20 trillion says we're in deep doo-doo.
Most US Gov’t spending comes nowhere close to looking like an Investment that will have a positive return.
That's comforting. We're not bankrupt because we can always hold a liquidation sale.
A 20% import tariff balances the budget tomorrow.
The writer graduated from the Krugman school of third grade math.
We have managed to stay ahead of the costs of debt for two reasons.
1. There has been unprecedented increases in productivity for the last century.
2. The United States has been shown to be the most stable and safe country in the world. (You might argue about Europe, but Europe’s stability has been far less than the U.S. (WWII) and post WWII the stability has been made possible by the U.S. Military.
We cannot be certain that those two factors will continue for the next 20 years.
Not so fast!
FairTax is the answer to our economic woes!
Keynes was wrong.....except for his observation that in the long run we are all dead
This article is based on a false premise, a family can have a mortgage and *still* have a balanced budget, as long as they are making their mortgage payments (which is interest and part of the principle). So having a balanced budget amendment doesn’t prevent the US from borrowing in emergency situations. It just requires the government to make plans for paying back the loan when it does borrow.
reign in spending
A fair tax is good but it does nothing to promote domestic industry like a tariff would. Both the NRST and a tariff could replace the income tax.
FairTax is the answer to our economic woes!
*************
I hope that’s the conclusion reached when hammering out his tax plan...
Me too!
+1
Our government has been reigning in spending for decades. The term the author means is rein in spending as in pulling the "brakes" on a horse.
Even the Keynesians don't argue for perpetual deficits. They want to run deficits during recessions and surpluses during the good times. We are far, far past that.
The FairTax (NRST) is a “border adjustable tax” in that imported goods WILL be taxed at the same rate as domestic goods.
In effect, the FairTax IS a tariff, much the same as a VAT is a tariff.
Our trading partners will impose their VAT on our goods and we’ll impose the FairTax on their goods, and there will be a level playing field in respect of imports and exports.
Under the FairTax our exported goods will be much more competitive in foreign markets because the FairTax ELIMINATES the “Tax Cost of Government” (as much as 25% of the retail cost of a US manufactured good) on ALL manufactured items; US goods will be exported TAX FREE!
Our foreign trading partners REBATE the VAT on exported goods which means they are essentially untaxed when they arrive in the USA.
FairTax fixes that problem!
Our trading partners impose their VAT on our imports, and we impose the FairTax on their stuff. EVEN STEVEN!
Besides there are are 14,000 tariffs on the books now. It is just that the duty schedule is such they bring in <1%. All President Trump needs to do is raise the duties on existing tariffs which he could do without congress.
My old hometown newspaper. As far left as the NYT.
Wrong. Once the gummint starts handing out monthly prebate checks, that will be the beginning of a swift end to freedom.
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