By Laurence M. Vance
During a campaign stop in Nevada early last month, Republican presidential candidate Donald Trump promised that if elected, there would be no more federal tax on tips. But why limit just certain income from taxation?
pull down to refresh
related posts
126 sats \ 24 replies \ @grayruby 8 Aug
That would be a winning strategy until bond yields completely blew out and the market crashed. I like the idea though.
reply
104 sats \ 18 replies \ @Undisciplined OP 8 Aug
The stimulus plans they come up with are often of roughly the same size as income tax receipts, so it wouldn't be much worse than that financially. Unlike those plans, though, it would actually help ordinary people.
reply
50 sats \ 2 replies \ @grayruby 8 Aug
They have no interest in actually helping ordinary people. Only pretending to want to help them to get their votes.
reply
91 sats \ 1 reply \ @Undisciplined OP 8 Aug
Of course. This exercise is just for fun. Although, maybe someday we'll get our own Milei type madman and some of this stuff will actually happen.
reply
64 sats \ 0 replies \ @didiplaywell 8 Aug
May the Forces of Heaven be with you
reply
76 sats \ 14 replies \ @0xbitcoiner 8 Aug
Are there financial stimuli every year?
reply
68 sats \ 13 replies \ @Undisciplined OP 8 Aug
No, I was just giving a sense of scale.
Keynesian stimulus is not good for economic health, though, which tax cuts are.
reply
49 sats \ 7 replies \ @0xbitcoiner 8 Aug
Got it! So, if they get rid of that tax, they'd have to find a way to make up for it or just print more money?
reply
47 sats \ 3 replies \ @Bell_curve 9 Aug
Or a smaller government budget
reply
41 sats \ 2 replies \ @Undisciplined OP 9 Aug
That’s certainly my preference
reply
45 sats \ 1 reply \ @Bell_curve 9 Aug
One of the silver linings of paying interest on debt is that voters can see the gravity of high debt especially debt to GDP ratio.
view replies
63 sats \ 2 replies \ @Undisciplined OP 8 Aug
Only about a third of government financing is from income taxes anyway. Some of the deficit would be made up for by other tax revenues increasing, which would happen because of the sharp increase in economic activity.
reply
20 sats \ 1 reply \ @Bell_curve 9 Aug
Payroll taxes
How significant is capital gains tax?
Medicare and Social Security are the two largest outlays
reply
41 sats \ 0 replies \ @Undisciplined OP 9 Aug
I think capital gains taxes only bring in about $200B.
reply on another page
40 sats \ 4 replies \ @Bell_curve 9 Aug
I don’t consider tax cuts to be stimulus.
Or economic stimulus is not the reason for cutting or eliminating income taxes
reply
41 sats \ 3 replies \ @Undisciplined OP 9 Aug
No, but that’s how macro people think. I think of it as a cessation of systemic expropriation.
reply
48 sats \ 1 reply \ @Bell_curve 9 Aug
Macro people think is Orwellian newspeak
reply
41 sats \ 0 replies \ @Undisciplined OP 9 Aug
It really is
reply on another page
20 sats \ 0 replies \ @Bell_curve 9 Aug
Macro thinking requires macro assumptions
reply
71 sats \ 4 replies \ @Undisciplined OP 8 Aug
On that note of bond yields though, I'm perpetually shocked at what lenders will tolerate, in terms of the underlying fundamentals.
I truly have no idea what will finally make people stop lending to the Feds.
reply
81 sats \ 2 replies \ @freetx 8 Aug
I heard Buffet give a talk one time basically saying that at a certain scale there is nothing you can do with your money but buy bonds.
Think about it in shitcoin terms. Yes, kids playing with $100 can make money with PREGNANT-OBAMA-BUTT coin, however its impossible to actually play that game with 100x that money because you will destroy the market (swamp all liquidity and drive prices crazy).
If you have 100M there are lots of good investments / safe allocations. At 1B in cash the options dwindle significantly. At 100B there is no place to put your cash other than US Bonds, because its simply too much cash to be absorbed by anything else.
reply
46 sats \ 0 replies \ @Bell_curve 9 Aug
SMCI and NVDA options and derivatives!
Annual federal government budget is 6 trillion dollars.
China and Japan and other foreign governments make big purchases of USA bonds. They used to buy more.
reply
62 sats \ 0 replies \ @Undisciplined OP 8 Aug
That's right. There's nothing else that's always for sale in that quantity.
Here's the obligatory "Bitcoin fixes this".
reply
46 sats \ 0 replies \ @grayruby 8 Aug
It's insane.
reply
53 sats \ 4 replies \ @cyberpunk02 8 Aug
no good reason not to, taxing income is immoral
reply
61 sats \ 3 replies \ @Bell_curve 9 Aug
Terrible tax if anyone thinks about the consequences. Taxing work.
The highest bracket used to be 90 percent!
reply
21 sats \ 2 replies \ @Undisciplined OP 9 Aug
It’s not as straightforward as it seems. Taxing work can actually make people work more, because it takes more hours to maintain their desired standard of living.
reply
48 sats \ 1 reply \ @cyberpunk02 9 Aug
(he writes as he's not working)
reply
31 sats \ 0 replies \ @Undisciplined OP 9 Aug
Just because I’m not working doesn’t mean I’m not logging hours.
reply