GOP Presidential Candidate New Economic Plan!

[SalvIsWin]

Tim Pawlenty has an interesting new tax plan. Firstly, he's going to grow the American economy by 5% each year. To put that in perspective, the Reagan recovery of '83 - '87 was 4.9%, and for Clinton from '96 - '99 it was 4.7%. So Pawlenty is going to top those numbers, and do it for above 250% longer of a duration. How's he going to do it? Tax cuts!

So Pawlenty is going to get rid of capital gains tax. So if you buy something, and then resell it for a higher price, you're no longer being taxed on that. So let's say you bought stock, and then it rose in value and you sold it, you wouldn't be taxed. So no more taxes for investments.

How much should you pay on interest from the bank? Stock dividends? Inheritances? Zero taxes. So for all of those things, you would pay zero taxes.

Corporate taxes would be reduced from 35% to 15%. Income tax rates would also be reduced to two flat rates: 10% for the first $50,000 ($100,000 if married), or 25% if you make over $50,000.

So how does this all work out? Well if you have money that's working for you, right now you're paying some taxes on that, but with Pawlenty's plan, you wouldn't pay anything. If you don't have taxes working for you, then it doesn't do anything for or against you.

Every tax bracket gets a break. Specifically, people making less than $50,000 will get a sizeable tax break, either 5% or 10%, and people making $50,000 or more will pay exactly what they do now, and the richer you are, the bigger the tax break will be for you (because the tax brackets scale upwards).

So this plan is supposed to break according to Pawlenty because there will be massive savings due to the 5% economic growth.

What do you think of Tim Pawlenty?
What about Pawlenty's plan?

 

[Big Nick Dudley]

It's ideological, always will be. These tax cuts are not paid for, same with the Bush tax cuts. The idea is for the wealth to trickle down (hiring will increase, rich people will spend more money, etc.). If you buy into that theory, you love this idea. If not, you don't.

I'm unconvinced this actually works. I have no idea what will work, fix our economy, and so on. But, no, I'm not sold on his vision.

 

[Shadowmancer]

what is the Mean earning in the US?

What is the average?

now how many working people are there in a general sense?

now do some math and lets say 40% earn the Mean wage, 20 earn the Average and 20% earn in the right upper levels of millions(so for exercise sake the top earners get 3 million per annum) and 20% earn whatever the minimum you could possibly earn working full time.(ie 40 hours)

Now work out what the numbers for Tax would be for the top earners if the exact number I said was a theoretical number that they all achieved, Run it through for the average, run it through for the mean and then for the minimum.

All this is done via the current federal tax system in the US.
Work out again based off of the suggested format that this guy is suggesting.

I know this doesn't take into account the capital gains tax and all that but this is an exercise to try out to see if what he is saying is a feasible number for tax to get in to run the Government. you would probably be surprised to realise that it probably isn't quite as good for the Country as it would seem.

Also factor in the ridiculous amount of debt that the United States as a Country has accrued. and compare the federal income compared to the debt taking into account that really 5%-10% should be paid off on a huge debt like that every year in a good economy and in a bad one Debt should be tried to get rid of quickly.

 

[klunderbunker]

It's trickle down economics, which has never once worked on a national scale. The one thing I want a reporter to ask a GOP bigwig: "If the Bush tax cuts are so vital to our economy, why has the economy collapsed while they've been in place?"