Originally Posted by MariconesUnited
The US is in a very very deep debt problem. You have 2 possible solutions, either you increase revenue or you cut expenses. I think it needs to do both at this time honestly. Cutting government expenses is very difficult to do however. It's not popular when put in practice.
In this particular instance I think this is a good idea. Europe is doing it as well, so there will be less incentive for the upper classes to go elsewhere. They should do it wherever possible ideally speaking. I don't see why investors and speculators should be exempt from paying taxes when buying and selling products. Everyone else does it why not them?
I would only support higher taxes if I actually believed that Congress and the President were going to put that money to good use, such as by paying down our debt with it.
Instead, historically they have shown that they always
spend more money than they take in. Even the so-called "surpluses" in the Clinton administration were criticized by many as caused only by accounting tricks.
Save for those surpluses, the US Congresses have consistently spent more money than they have taken in for the last several decades. There is no reason to believe that they will magically become better-educated and more responsible with the money they receive in the future.
Every time Congress gets more money in tax revenue, they spend more than 100% of that money
during the same year by going into further debt.
In my mind, the most likely scenario concerning any new tax is this:
1. Congress enacts new tax.
2. $100B in new tax revenue is raised.
3. Stupid, greedy Congressmen think "wow, we can now afford to spend another $140B!"
4. America goes into $40B more debt and its citizens are even further screwed.