What’s the ROI and how do we repay it?
Grow the economy and tax people/companies more.
Higher tax rates cause lower GDP growth rates. A country can’t tax its way to economic prosperity. Anything above 20% of GDP starts to lower growth and growth declines more the higher percent of GDP that’s paid in taxes.
We’re already running deficits, and GDP growth is slower than deficit growth. We’ve added $8T to debt and GDP growth is $3.5T. There’s no point where deficit spending causes enough GDP growth, so tax revenue offsets the higher spending.
We can revert back to Bill Clinton’s time and roll back the Bush tax cuts. I remember the economy was growing just fine in the 90s. There is also more to tax policy than the headline number. Who you tax, how and what also has a big impact on growth.
At the end of the day, there is more to life than tax and debt. It’s like you make 6 figures so you don’t want to eat instant noodles for dinner everyday. You can afford some niceties in life. Similarly, as a society we decided it’s nice to have social security and universal health coverage, and we can well afford it. After all, what’s the point of making so much money and not spending any?
Clinton lowered the capital gains rate which led to lots of private investment. True investment leads to growth.
Afford it by what metric? Debt is already growing faster than our economy. There’s a point on that trend line where interest becomes to much of the budget, and it implodes.
Just look at the Treasury rate. Tell me who are worried about federal debt. Apparently not the bond holders. People who actually put money where they mouth are don’t seem to worry about any implosion.
Our 10-year yield is higher than:
Germany
UK
France
Italy
Spain
Netherlands
Switzerland
Japan
Hong Kong
South Korea
- Trade deficit
The main reason is high corporate tax (35%) drives the US based companies shift their revenue, profit and cash reserve to tax haven (less than 15%) countries. Trillions of dollars are kept in around 7 to 12 countries across the world for tax haven purpose.
Take one example, Apple revenue base is mainly in USA, but pays 25% of revenue related tax in USA and 75% revenue related tax in Ireland. In short, assuming $1000 iphone costs, $250 revenue accounted in US and $750 in ireland. Apple debt to ireland is $700 which will reflect in US trade deficit. Ireland may give $250 manufacturing cost to China and keep $500 !
All big companies, market cap above 1 Billion, have some way or other parking their money (trillions) overseas and reflects in US trade deficit.
- High savings rate
For the last 8 years (since 2008), most the homes are purchased with 20% down payment. This is an increase in 0 down or 5% down payment range. US Real estate is the major industry and savings last 8 years improved.
- High Credit cards rate
After 2008, credit cards rates are hiked 20% +, results less usage of credit cards. Since global economic issues, we get cheaper price and inflation is low. This has again reduced the debt or expenses.
- Wars are almost stopped
This is one of the worst Decisions of Bush time resulted massive expenses. This is stopped almost draining tax payers money.
- When all are positive, economy is growing steady path, the only negative is FED QE money printing 4 Trillion level. This was stopped and economy has to take its own time to bring back growth.
So far, US has done the best compared to world economy and that is the main reason we have stable life.
1 Like
Yes it’s still higher than zero.
Presidential debate: Audience urged to stop laughing when Donald Trump says he respects women
Looks like more people are realizing his product is worse than Snake Oil.
“Such a nasty woman”
This dude is a national disgrace.
I had to google to find out the origin of this comment 
, because haven’t watched any of Trump debates, in spite of being a political junkie. [Tried to watch a few debates during the Republican primary but gave up usually in 15-20 minutes].
People starting to wake up to the possibility of Hillary getting 400+ EV’s. Remember folks, I said it first. 
2 Likes
Another person in the 400+ camp:
Steve Schmidt, former advisor to John McCain’s 2008 presidential campaign, appeared yesterday on MSNBC’s Morning Joe and suggested that it looks like Hillary Clinton is heading towards an electoral college blowout. Asked by host Joe Scarborough how many electoral votes Clinton will claim, Schmidt opined, “I think she’s trending over 400.” Schmidt went on to say that he expects Democrats to take the Senate and to pick up 25 House seats or more.
1 Like
Those darn liberals helping the Japanese to receive an apology and reparations. And it had to be the other liberal republican Bush to amend the damage. Good job!
I can be both republican and democrat at any time. I was a conservative back home, only to see the light when during my asylum process I found out uncle Reagan doing the ugliest things to my former Guatemalan people. None the less, just thinking he was or he is an idol of many, he was as liberal (if we compare what liberals have done in the international arena) as any liberal of today.
You may want the change in the government, but to change you can’t leave the entire system damaged by your stupidity or your ineptitude to accept that this is the beauty of democracy, you learn to lose with grace and dignity. If you for being a rich guy, think that everything has to come your way, that you will never have to fight hard to get something, then go back to what you know because as Trump himself said, you are a “xxxsy”. Excuse my French.
I don’t think this country will repair itself pretty soon from the damage done by this egoistic person. The whining and self entitlement this guy made us put up with is disgusting. Insulting most every race, nationality and women, and handicapped and else is something the American people can’t forget. Your money can’t erase the ugly in you. Never!
Hillary is a crooked candidate. But as same as Sadam, it was our bad guy, and so is Hillary. Whereas Trump, he seems to be more of a Manchurian candidate than a patriot person. Not having the cojones to denounce the hacking of our country, not having the integrity of at least while campaigning to say something about Putin is beyond my acceptance of an American who loves his country.
I repeat, how hard is it to have a Republican candidate who is a moderate, fiscally conservative, not a bible thumper but level headed???
(sounds of crickets…)
2 Likes
You mean Obama? Compare Obama to Reagan and you will see today’s centrist Democrat is pretty much yesteryear’s Republican.
Today’s Rs have all gone cuckoo crazy.
Abraham Lincoln to The Donald…
My, my, my…(SMH)
But I respect women…
:innocent