Economics
It's amazing how many people don't understand basic economics,especially when it comes to how the government raises money, and how little the economy of the country normally affects the individual.
There are many things that affect an individuals income besides the state of the economy. It's all about a persons position in life, if they have a career or job that is in a growth industry, and there is a downturn in the economy, their income might not be affected. I had my best years during the Carter Administration,when the country was seeing high inflation, high interest rates, and high unemployment. It was because I was employed by a company that was enjoying high growth and I was getting record union wage increases every year.However,the company I was working for experienced many difficulties because of soaring fuel prices and high interest rates. Management personnel received stock as part of their bonuses, as a result of the economic problems that the country was facing, they couldn't buy back the stock that had been purchased by managers, thus the managers had to wait to retire.
The company probably couldn't have survived much longer if tax cuts hadn't been initiated during the Reagan administration. The end result would have been that I would have lost my good job if taxes hadn't been reduced and inflation, and interest rates had not been gotten under control.
Also people don't understand how lowering taxes actually increases the governments ability to collect more in taxes.
When tax cuts occur, people have more money to spend , thus more products and services are purchased, there by increasing the GNP,which in turn increases the amount of tax money collected.
The Federal Government is currently collecting more tax revenue than it ever has, the problem is not the tax cuts that have been implemented by President Bush, they have been a great stimulus to jump start the economy after the downturn in 2000, as well as the after effects from Sept. 11.
The reason for the deficit,which is becoming less and less every year, is that we have a congress that spends money like it is going out of style. Until congress learns to curb needless and wasteful spending we will always have a deficit.
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There are many things that affect an individuals income besides the state of the economy. It's all about a persons position in life, if they have a career or job that is in a growth industry, and there is a downturn in the economy, their income might not be affected. I had my best years during the Carter Administration,when the country was seeing high inflation, high interest rates, and high unemployment. It was because I was employed by a company that was enjoying high growth and I was getting record union wage increases every year.However,the company I was working for experienced many difficulties because of soaring fuel prices and high interest rates. Management personnel received stock as part of their bonuses, as a result of the economic problems that the country was facing, they couldn't buy back the stock that had been purchased by managers, thus the managers had to wait to retire.
The company probably couldn't have survived much longer if tax cuts hadn't been initiated during the Reagan administration. The end result would have been that I would have lost my good job if taxes hadn't been reduced and inflation, and interest rates had not been gotten under control.
Also people don't understand how lowering taxes actually increases the governments ability to collect more in taxes.
When tax cuts occur, people have more money to spend , thus more products and services are purchased, there by increasing the GNP,which in turn increases the amount of tax money collected.
The Federal Government is currently collecting more tax revenue than it ever has, the problem is not the tax cuts that have been implemented by President Bush, they have been a great stimulus to jump start the economy after the downturn in 2000, as well as the after effects from Sept. 11.
The reason for the deficit,which is becoming less and less every year, is that we have a congress that spends money like it is going out of style. Until congress learns to curb needless and wasteful spending we will always have a deficit.
Now you can follow me on Kindle.
Design your own photo gifts, yhour photo or mine.
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