Clinton surplus "myth" II

Discussion in 'Budget & Taxes' started by Iriemon, Oct 30, 2012.

  1. Iriemon

    Iriemon Well-Known Member Past Donor

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  2. Iriemon

    Iriemon Well-Known Member Past Donor

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    Sure it will. If you have gross income of say, $12 trillion, and your effective tax rate is 20%, your revenues are $2.4 trillion.

    If you raise the effective tax rate to 25%, your revenues are 3.0 trillion. 0.6 trillion higher than with the lower effective tax rate.

    I did substantiate my claims. The onus is now on you to show I'm wrong. You obviously didn't go to law school.
     
  3. Iriemon

    Iriemon Well-Known Member Past Donor

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    Pass a law increasing the tax rate or decreasing deductions and loopholes or more enforcement by the IRS or some combination thereof.
     
  4. Ethereal

    Ethereal Well-Known Member

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    You have already stated that the relationship between tax revenues and tax rates is not significant.

    Have you established that decreasing deductions and loopholes will necessarily result in higher tax revenues?

    Is the IRS not adequately enforcing our tax laws at present?
     
  5. Ethereal

    Ethereal Well-Known Member

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    You have not demonstrated how to raise individual's effective tax rates. Your argument is based upon a giant IF which you have not explained or substantiated in any way.

    You didn't substantiate anything. You are merely talking about IF this and IF that. Of course, IF you raise effective tax rates, tax revenues will increase. The problem is that you don't actually know how to raise effective tax rates. You are just speculating.
     
  6. Iriemon

    Iriemon Well-Known Member Past Donor

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    My bad. I thought your post was saying describe the relationship between tax rates and income as opposed to revenues (because Squid's point was about income, see post #506) . On re-reading it I realize I mis-read your post because you incorrectly identified your post as being Squid's point.

    Based on your post (and not Squid's) I'll correct my response:


    Revised response: I specifically identified the relationship between tax rates and tax revenues, as have many others in this thread. The relationship is that revenues = effective tax rate * gross national income. It takes no special technical expertise at all to describe. Just a knowledge of basic macroeconomics.​


    If it increases the effective tax rate of taxes collected it will result in higher tax revenues for any given level of gross national income.

    I'm not familiar enough with IRS enforcement to answer.
     
  7. Iriemon

    Iriemon Well-Known Member Past Donor

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    Who said anything about an individual's effective tax rates? We are talking about macroeconomics.

    Are you trying to argue it is impossible to raise the national effective tax rate?

    Sure I did. What is the problem with an "if"? Never got to conditional functions in your math classes, eh?

    It's not big deal to raise effective tax rates, putting aside the politics. I explained how in my previous post.
     
  8. Ethereal

    Ethereal Well-Known Member

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    You are claiming that raising tax rates will cause tax revenues to increase, but you have already stated there is no significant relationship between tax rates and tax revenues. If there is no significant relationship between tax rates and tax revenues, then how can you claim raising tax rates will somehow cause revenues to increase?
     
  9. Iriemon

    Iriemon Well-Known Member Past Donor

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    Do you even bother to read my posts? Or do you just blindly fire off the same nonsense irrespective of what I write?

    http://www.politicalforum.com/budget-taxes/273593-clinton-surplus-myth-ii.html#post1061890679
     
  10. Iriemon

    Iriemon Well-Known Member Past Donor

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    Do you even bother to read my posts? Or do you just blindly fire off the same nonsense irrespective of what I write?

    http://www.politicalforum.com/budget-taxes/273593-clinton-surplus-myth-ii.html#post1061890679
     
  11. Ethereal

    Ethereal Well-Known Member

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  12. Iriemon

    Iriemon Well-Known Member Past Donor

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    Well then why in the hell would you argue that I "stated there is no significant relationship between tax rates and tax revenues" when I had just explicitly stated that my post stating that was an error from misunderstanding your post and corrected it?

    Please identify what you claim is my "lying garbage".

    We're just seeing you resort to ad homs as you always do.
     
  13. Ethereal

    Ethereal Well-Known Member

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    Your argument is the same tired leftist crap as usual. You say we need more tax revenues to pay for the insane spending in Washington, and that we can accomplish this by raising tax rates, but you have no evidence which shows that raising tax rates will cause revenues to increase. Your position is faith-based nonsense which you attempt to obfuscate with cheap lawyering tricks and tactics. Everything you type is lying garbage these days.
     
  14. Iriemon

    Iriemon Well-Known Member Past Donor

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    I know. Arguing that we need more revenues when they are propotionately at 60 years lows is such lying garbage. And why would anyone think that raising taxes would bring in more revenues? Cheap lawyering tactics. Rush says so.

    Thanks for demonstrating the kind of reasoning and analysis I've come to expect from our conservative friends.
     
  15. Iriemon

    Iriemon Well-Known Member Past Donor

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    I know. Arguing that we need more revenues when we have a trillion dollar deficit and revenues are propotionately at 60 years lows is such lying garbage. And why would anyone think that raising taxes would bring in more revenues? Cheap lawyering tactics. Rush says so. Faith based nonsense.

    Thanks for demonstrating the kind of thoughtful reasoning and analysis I've come to expect from our conservative friends.
     
  16. Ethereal

    Ethereal Well-Known Member

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    Glad you agree. The problem is spending. The sooner you realize this, the sooner you can stop embarrassing yourself.

    That's what everyone has been asking you. Apparently, you don't have an answer.

    I don't listen to Rush Limbaugh.

    More lying garbage from you.
     
  17. Iriemon

    Iriemon Well-Known Member Past Donor

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    Your continued childish ranting is only so entertaining. Maybe someone else will find it enjoyable.
     
  18. Ethereal

    Ethereal Well-Known Member

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    And maybe you will find some evidence which shows raising tax rates will actually raise revenues. Not holding my breath.
     
  19. Meta777

    Meta777 Moderator Staff Member

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    Base Function:

    R = ET * I

    Where, R = Revenue,
    ET = Effective Tax Rate as a decimal (again, not Extra Terrestrial),
    and I = Total Household Income.

    I = P * A

    Where, P = Number of Households in Population
    and A = Average Income per Household

    ET = T - (D + TE)

    Where, T = Marginal Tax Rate,
    D = Total Deductions,
    and TE = Losses from Tax Evaders





    And, taking ET's potential affect on I into account and adding spending to the equation:

    R = ET * f(I)
    f(I) = I - f(ET*I) + f(S)

    Where, S = Spending back into the economy,
    I = previous total income,
    f(I) = current total income,
    f(ET*I) = taxed revenues impact on incomes and is assumed to have a negative impact on incomes,
    and f(S) = government spending's affect on incomes and is assumed to have a positive impact on incomes

    If f(ET*I) == f(S) then R = ET * I
    if f(ET*I) < f(S) then f(I) > I
    if f(ET*I) > f(S) then f(I) < I

    Do you disagree with any of these equations? Because they clearly show that there are circumstances where raising taxes will lead to increased revenues...

    -Meta
     
  20. Ethereal

    Ethereal Well-Known Member

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    Equations don't "show" anything. They are just constructs of mathematics. The equation you are using is just useless. It has no predictive power whatsoever. If that equation were relevant to the real world, it could be used to predict revenues with near-perfect accuracy and precision. For instance, the equation "f=ma" has been PROVEN to be predictive under a number of circumstances; your equation, however, cannot predict its way out of a wet paper bag. It is just some idea in your head, not actual evidence.
     
  21. Meta777

    Meta777 Moderator Staff Member

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    So your argument is basically just that the equation I provided you is useless?
    Well what exactly makes it useless? Does it not show the correct relationship between tax rates, income, and revenues?
    Certainly, the base function "R = ET * I" cannot be disputed, and as "f=ma" has been PROVEN to be correct in the sense
    that both ET and f are explicit variables, explicitly defined in relation to the other two. As for the rest,
    if there is something wrong with or insufficient about the equations I posted, you should be able to point out exactly what that is.

    -Meta
     
  22. Ethereal

    Ethereal Well-Known Member

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    I already made a cogent and rational argument. That equation has no demonstrated predictive power. You have no idea under what set of circumstances it applies or does not apply. You cannot actually use it for anything pertaining to the real world like you can with "f=ma" or "v=d/t".
     
  23. squidward

    squidward Well-Known Member

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    you have no way to substantiate this. You are simply guessing




    your I know you are but what am I schtick is pretty lame.
     
  24. squidward

    squidward Well-Known Member

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    correction : R = f(I) = ET*I
     
  25. Meta777

    Meta777 Moderator Staff Member

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    Your argument is nothing more than you saying that the equation is useless and cannot be used, because you say so.
    You say that I do not know what circumstances the equation can be applied in, but I listed those circumstances out.

    R = ET * f(I)

    If f(ET*I) == f(S) then R = ET * I
    if f(ET*I) < f(S) then f(I) > I
    if f(ET*I) > f(S) then f(I) < I

    Those are the general circumstances under which the equation can apply, and I should point out that I have also previously laid out how it can be predicted which specific circumstance will apply given a particular source and destination for taxes and spending.

    Its true that unless we are dealing with the first case, that the exact amount of revenues can't be derived from these equations,
    but even in the case that f(ET*I) != f(S) they can tell us whether revenues will be greater or lesser if ET is changed.
    And is that not the very thing of which we were wanting to predict? Also, please note that if f(ET*I) does happen to equal f(S),
    then the equation will in fact predict an exact amount for revenues assuming no external factors.

    So then tell me, what exactly is the problem you have with these equations?
    What is it you are wanting them to do, that they are not doing?

    -Meta
     

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