Article

2009-05-28 Economy

Income tax revenue dropped 44% from a year ago.

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Posted by GolfBravoUSMC 2009-05-28 09:03|| E-Mail|| Front Page|| [336066 views ] Top

#1 The Boomers now are in their 50s and 60s and unlikely to keep increasing incomes for long, which means that revenue from income taxes could flatten in the next few years.

On the other hand, IF the kids are out of the house and those 80% who are not in mortgage trouble are finishing off their house payments, discretionary income should be increasing or at least compensating the shift from full time to retirement income. Income taxes won't increase per se, though consequently you can expect the government to fully tax retirement incomes soon, but consumption taxes should be in better shape. Of course, that will mean the pols will lust for the VAT. It's the 'utes' who'll be slammed for both the full income tax and VAT, and the mandatory national health insurance. Hope and change - hope you have any change left after the tax man.

Posted by Procopius2k 2009-05-28 09:31|| 2009-05-28 09:31|| Front Page Top

#2 I guarantee it's the best paid losing pay, rather than the unemployed that has made 90% of the "loss".

It also shows how the most productive are fined the most for their efforts.

Posted by Bright Pebbles 2009-05-28 11:14|| 2009-05-28 11:14|| Front Page Top

#3 Has America ever had a mass exodus of people Emigrating before?

Just saying cos it might happen soon.

Posted by Bright Pebbles 2009-05-28 11:16|| 2009-05-28 11:16|| Front Page Top

#4 Well, the Crown Loyalist who departed after the last war over the issue of taxes came up comes proportionately as close to a 'mass' exodus we've had. On the other hand, that war was fired up by the tax issue as was another 'disturbance' over there in France a couple years later when that government went bankrupt.

Posted by Procopius2k 2009-05-28 12:01|| 2009-05-28 12:01|| Front Page Top

#5 Has America ever had a mass exodus of people Emigrating before? Just saying cos it might happen soon. Just where is there to go? Mars?

Posted by Anguper Hupomosing9418 2009-05-28 13:24|| 2009-05-28 13:24|| Front Page Top

#6 Just where is there to go? Mars?

How about The Republic of Texas?

Progressive tax rates are a big part of the problem here. During boom times highly progressive rates create mountains of cash. That all disappears during 'normal' times and recession.

For example, say you have a hair dresser who starts selling houses during a real estate boom. Suddenly she's making $300k/year. Unlike people who are accustomed to high income, she has taken no steps to shield any of this from taxes. Result is lots of new tax revenue. Then the real estate bubble pops and our heroine is back to cutting hair. Tax revenues disappear.

The nastiest part of all this is that government budgets assume that the boom will last forever, and even grow. When the boom goes bust they have to make up for the lost revenue somehow (real spending cuts are the last thing they would consider) so the burden gets passed on to the middle class. Rinse and repeat.

Posted by Iblis 2009-05-28 13:38|| 2009-05-28 13:38|| Front Page Top

#7 when the gov't stops looking at taxes as a source of "revenue" and starts living within its own means as every citizen is supposed to this will no longer be an issue.

Posted by Andy Ulusoque aka Broadhead6 2009-05-28 15:12|| 2009-05-28 15:12|| Front Page Top

#8 "How about The Republic of Texas?"

Home of LITERAL bloodsucking government officials?

http://blogs.dallasobserver.com/unfairpark/2009/05/this_weekend_dallas_police_to.php

No thanks.

Posted by ebrown2 2009-05-28 16:19|| 2009-05-28 16:19|| Front Page Top

#9 I've talked to several people lately who have told me they're working less, bartering their services, or asking to be paid in cash in order to cut their tax bill. Many are putting their non-claimed income into gold and silver, or into other thing of value other than cash. Obviously they believe you don't have to have a weapon to rebel against "the Man". Expect the trend to increase as Congress passes more and more tax legislation.

Posted by Old Patriot">Old Patriot 2009-05-28 19:12|| http://oldpatriot.blogspot.com/]">[http://oldpatriot.blogspot.com/] 2009-05-28 19:12|| Front Page Top

#10 Has America ever had a mass exodus of people Emigrating before?

And where are we supposed to go?

Posted by Omoth Forkbeard9960 2009-05-28 19:33|| 2009-05-28 19:33|| Front Page Top

#11 Indian Territory and West Coast. See: "1800's"

Posted by Frank G">Frank G 2009-05-28 19:57|| 2009-05-28 19:57|| Front Page Top

#12 Hey, you got a Democrat president and congress. Who pays taxes? Geitner? Daschle? anyone?

Posted by Skunky Glins 5***">Skunky Glins 5*** 2009-05-28 21:29|| 2009-05-28 21:29|| Front Page Top

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