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Originally Posted by CRedskinsRule
I agree, and a side note on this, people may have started noticing the fed raising rates, and while individuals may feel a little of that, guess what happens when the federally borrowed money starts having to pay higher rates, it's not a good thing.
I do think the difference on the stimulus vs solid gdp growth, is a lot of the stimulus was borrowed money that doesn't increase the tax base. In sound GDP growth, tax revenues rise as a result. BUT your point is right it's not enough, and Congress needs to stop living in tax and spend environment.
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Thank you for being capable of a meaningful discussion. When I'm a pain in the ass at least I'm funny. Chico and G1 need to take it to the kids table.
Agree that the higher GDP growth is driving higher tax base. Unfortunately though the part of the GDP that has grown has been heavier on the corporate side of the ledger, which has led in part to corporations performing stock buybacks, which increases stock prices and those capital gains get taxed. But not at a rate as high as you'd get by taxing wages / regular income. We're seeing wages finally rising some, but not at the same rate as corporate earnings and stock prices.
Trump's position on China of course is leading to tariffs, which of course pads the federal coffers. I'd be interested to see how much of an impact that's having on our deficit. In other words, without it how big would our deficit be? So that part of his approach has to be thrown in the mix. Overall I'm not a fan of protectionist practices but a source of tax revenue is a source of tax revenue.
Overall my concern is our economy feels really strong right now but that strength isn't sustainable. When interest rates eventually rise the impact on our federal budget will be large. Tough choices about our fiscal spending loom and people will eventually feel a lot of pain, it's just a matter of which Americans will bear the burden, and when.