NEP’s Bill Black appears on The Real News Network and says that both Republicans and Democrats are financially illiterate when they speak about the deficit, and Trump’s economic experts are ‘completely disconnected from the real world.’ You can view here with a transcript.
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You mean that the poorest part of the community pay the most tax. Even this is not true because these people have even less earnings that those slightly more wealthy ones who do pay tax. We really need a graphical representation to show the income of the community and the amount they pay as income and purchase tax in order to get a properly balanced picture.
What crap! When taxes are reduced there will be greater expenditure and investment elsewhere. A different distribution of tax is what can be of use and when less tax is paid by wealthy organizations, less money will be spent by the government and it will reduce the numbers of officers it can employ.
David Harold Chester, Can you explain exactly why there will be greater investment when there is not enough demand for the goods that can already be produced? If a person has money saved up, but there is nothing worth investing in, why on earth would they invest it anyway? Why would they hire people to make more stuff that they will not be able to sell? Why not just buy safe government securities to earn a little interest rather than invest in something that is sure to lose money?
This fixes some typos in my original comment.
Bill’s explanation of the difference between the deficit and the debt is somewhat off point, but possibly exactly backwards. I am surprised that he, of all people, would confuse that issue. The national debt is a record of the accumulation of deficits over the years. I bet he wishes he could take back what he said.
Actually, the national “debt” is fundamentally a misnomer, as it is more accurately the amount of deposits in treasury accounts at the Federal Reserve, and, at a macro level, represents net private sector wealth/savings (or as Warren Mosler would describe it as net tax credits that have yet to be paid). Both treasury bonds and reserves are liabilities of the federal government and assets of the private sector. The fact that the national debt happens to equal net accumulation of deficits is an artifact of the treasury rules that were established during the gold standard era. I don’t refer to my savings balance as my bank’s debt, so perhaps if we started referring to the national debt as $20 trillion in net private sector savings, it wouldn’t sound so scary to the general population.
greatest “percent of income” taxpayers, are the property owning poor! Who pay no federal or state income tax because they don’t have enough income but are paying property tax on homes they live in!