How these numbers affect us all is because we don't each live in a vacuum. Take the 1.5 million dollar couple. They typically would be buying items most of us consider luxuries. If the government takes the extra 5 % tax for healthcare, that is 75k out of their spending. There is also another part to the tax plan that removes some itemized deductions for those making 250k and up. I don't have the numbers in front of me on that, so we will stick to the 75K.
So now they lost 75k, do you honestly think they are just going to laugh it off, what is 75 thousand. One of two things is going to happen. Either they will invest 75 thousand less into the economy which is desperate right now for capital or they will spend 75 thousand less. If they spend less, that means companies will sell less and not need as many employees. Say they now don't buy the new airplane. The manufacturer doesn't need the labor to build the plane that will not be bought now, the suppliers to the manufacturer won't be supplying the parts and materials, so they don't need as much labor and so on and so on.
When the government takes money out of the economy, it does nothing to generate new revenue, unless it is for infrastructure and even then the programs are so inefficent it doesn't make much. So with all of the problems we have today in this economy which have been brewing for 50 years, record deficits which even adjusted for inflation have never been seen before, the governments answer to fix it, spend even more.
And here is another question to think about how this affects everyone, have you ever seen an entitlement program that came in under budget ever? Social security, medicare, medicaid, prescription drugs. Not a one of them is under budget. If healthcare runs over budget, who pays the difference? WE DO. Does any one realize that the estimates in 10 years for the interest on the debt will be almost 20% of the entire budget? 1 trillion dollars a year for the interest only mortgage the DC crowd has us all on. Where is that money going to come from?
Wrong time and place to be spending like drunken sailors on leave. They need to be spending less, not more. I know there is a problem with healthcare, but this is not the time nor the way to fix it now.
Re: this could be you
Member #: 61931
Registered: 9/16/2008
Posted:
963
Occupation:
Tower Contractor
Location:
PA
Personal:
mid 50s
Experience:
~37 years
There is 1 reply to this message
