If "trickle down" doesn't work

[Gunners Up]

he builds him a bigger house on his tax savings.

Samb errr menmon

Rich Guy hires a builder, builder hires subcontractors, who buy more building materials from lumbar yard, Lumbaryard must hire more hands due to demand & buy more buildig supplies, mills must hire more people due to demand, mill buys more raw materials due to demand, building supply mfg. must hire more people due to demand and buy more raw materials and on goes the cycle.

Ripple Affect Regards,

RD

PS: Still chuckling at the irony.......

[ARay11]

Aray that is not trickle down....trickle down is where you don't make a rich guy pay taxes so that he will add on to his factory and make jobs and then his employees go spend it at WalMart, etc. and he builds him a bigger house on his tax savings. (no, he builds a bigger house on the money he made establishing a new corporation. Thereby continuing to stimulate the economy by employing housing contractors, concrete guys, sawmills, etc. And, by the way.... he's having to pay taxes on that new company turning a profit...AND...maybe, just maybe, he had so much fun doing it the first time and gets a kick out of employing folks....MAYBE he will do it again.... Create yet another company, to employ more people, and those folks can pay taxes and then THAT company can pay taxes....
holy chit... it kinda makes sense....

[Gunners Up]

ARay11,

Great minds think a like! You can tell why Obama didn't carry a county in Oklahoma during the 2008 elections.

RD

[ARay11]

ARay11,

Great minds think a like! You can tell why Obama didn't carry a county in Oklahoma during the 2008 elections.

RD

We are hoping for a similar result in 2012!!

[mudminnow]

The stimulus gave made up money to the states for public jobs for a few years. The problem is after the stimulus runs out, there is no way to pay those employees. It is a false sense of security that put states in more debt. The great state of SC fought hard to use the money to pay down our debt, but were forced to use it unsustainably for public employees. So soon we will hear about government funding being cut and employees will lose their jobs because of draconian government cuts when really it is the stimulus money that ran out and there is no way to sustain the gov't without, ding ding ding, another stimulus and so the cycle goes until we are all in debt to the Fed govt and states rights are even smaller than they are today. Can anyone (menmon, other left leaning folks) say that the gov't can make a plan or a solution to this problem? What could they do to help this out? We can't tax our way out of this problem. I feel like most people who vote democrat feel good about voting that way because there is a false sense of "i am helping out the needy", while it would be much more effective to help the needy out yourself instead of most of your tax dollars funding the bueracracy(sp?) that hinders american growth today. You are no better a person because you vote for someone eles's money to be given to charity, that makes you a hippocrite to the nth degree. I feel like it is pretty evident that the more gov't influence, the harder it is to succeed.

[roseberry]

Aray that is not trickle down....trinkle down is where you don't make a rich guy pay taxes so that he will add on to his factory and make jobs and then his employees go spend it at WalMart, etc. and he builds him a bigger house on his tax savings.

this is in fact, "trickle down" economics. however the "rich guy" doesn't build his own house......I BUILD IT FOR HIM! if he saves $50k in taxes next year and builds/finances a $500k home on his projected tax decrease/income increase, in building that half million dollar home:
- he will pay approx $25K in state and local sales taxes in this immediate tax year
- he will pay permit and inspections fees to his local jurisdictions of approx $2k immediately
- he will pay increased property taxes on the structure and change in use from agricultural to residential of up to $5K immeditately and ongoing(more or less depending on where you live)
- i and my employees/subcontractors will pay approximately $40k in state and federal income taxes on our earnings
- at least one of my subcontractors will have his "earned income tax credit" reduced for his five kids. this reduces federal expenditures by $8.4k
- when we spend our earnings (less the 10% we save) another $27k in state and local sales taxes are paid immediately
- by me and my subcontractors saving 10% and investing in the market via ira and 401k, taxes are deferred into future years when the federal government will need the money even more. plus as money comes into the stock market, prices tend to rise for all.

the way i figure it if the "rich guy" saves $50k in fed income taxes, the federal government will still net collect $41.4k and the state another $7k in income taxes. if the states have more they need less fed assistance. state and local governments will recieve another $59k in sales and property tax increases, and federal and states will defer income taxes on invested money that will grow overtime to future periods of taxation.

on the other hand if the "rich guy" pays the $50k in taxes the states will get $10k in fed funding, entitlements will recieve $40k, we will borrow $500k from china based on projected tax revenues. deficit and debt go up! under this scenario the only person i know who gets anything is the subcontractor who works for me who recieves the $8,400 earned income tax credit and $700 in food stamps per month.

in other words if the "rich guy" gets his money taken away by federal taxation, one thing is certain I DON'T GET A DARN DIME !!! and one guy i know gets assistance.

if he keeps his money and builds a house, all the taxes(maybe more) still get paid, hundreds people work and spend, hundreds of thousands of dollars of materials are sold, I MAKE A SHIZ LOAD OF MONEY AND THAT RICH BASTARD GETS A NEW HOUSE........

what the hell is wrong with that rich bastard gettin' a new house?

[ARay11]

this is in fact, "trickle down" economics. however the "rich guy" doesn't build his own house......I BUILD IT FOR HIM! if he saves $50k in taxes next year and builds/finances a $500k home on his projected tax decrease/income increase, in building that half million dollar home:
- he will pay approx $25K in state and local sales taxes in this immediate tax year
- he will pay permit and inspections fees to his local jurisdictions of approx $2k immediately
- he will pay increased property taxes on the structure and change in use from agricultural to residential of up to $5K immeditately and ongoing(more or less depending on where you live)
- i and my employees/subcontractors will pay approximately $40k in state and federal income taxes on our earnings
- at least one of my subcontractors will have his "earned income tax credit" reduced for his five kids. this reduces federal expenditures by $8.4k
- when we spend our earnings (less the 10% we save) another $27k in state and local sales taxes are paid immediately
- by me and my subcontractors saving 10% and investing in the market via ira and 401k, taxes are deferred into future years when the federal government will need the money even more. plus as money comes into the stock market, prices tend to rise for all.

the way i figure it if the "rich guy" saves $50k in fed income taxes, the federal government will still net collect $41.4k and the state another $7k in income taxes. if the states have more they need less fed assistance. state and local governments will recieve another $59k in sales and property tax increases, and federal and states will defer income taxes on invested money that will grow overtime to future periods of taxation.

on the other hand if the "rich guy" pays the $50k in taxes the states will get $10k in fed funding, entitlements will recieve $40k, we will borrow $500k from china based on projected tax revenues. deficit and debt go up! under this scenario the only person i know who gets anything is the subcontractor who works for me who recieves the $8,400 earned income tax credit and $700 in food stamps per month.

in other words if the "rich guy" gets his money taken away by federal taxation, one thing is certain I DON'T GET A DARN DIME !!! and one guy i know gets assistance.

if he keeps his money and builds a house, all the taxes(maybe more) still get paid, hundreds people work and spend, hundreds of thousands of dollars of materials are sold, I MAKE A SHIZ LOAD OF MONEY AND THAT RICH BASTARD GETS A NEW HOUSE........

what the hell is wrong with that rich bastard gettin' a new house?

roflmao...not a darn thing!!! I hope he needs a lakehouse, summer home, and winter cabin!!

[Raymond Little]

this is in fact, "trickle down" economics. however the "rich guy" doesn't build his own house......I BUILD IT FOR HIM! if he saves $50k in taxes next year and builds/finances a $500k home on his projected tax decrease/income increase, in building that half million dollar home:
- he will pay approx $25K in state and local sales taxes in this immediate tax year
- he will pay permit and inspections fees to his local jurisdictions of approx $2k immediately
- he will pay increased property taxes on the structure and change in use from agricultural to residential of up to $5K immeditately and ongoing(more or less depending on where you live)
- i and my employees/subcontractors will pay approximately $40k in state and federal income taxes on our earnings
- at least one of my subcontractors will have his "earned income tax credit" reduced for his five kids. this reduces federal expenditures by $8.4k
- when we spend our earnings (less the 10% we save) another $27k in state and local sales taxes are paid immediately
- by me and my subcontractors saving 10% and investing in the market via ira and 401k, taxes are deferred into future years when the federal government will need the money even more. plus as money comes into the stock market, prices tend to rise for all.

the way i figure it if the "rich guy" saves $50k in fed income taxes, the federal government will still net collect $41.4k and the state another $7k in income taxes. if the states have more they need less fed assistance. state and local governments will recieve another $59k in sales and property tax increases, and federal and states will defer income taxes on invested money that will grow overtime to future periods of taxation.

on the other hand if the "rich guy" pays the $50k in taxes the states will get $10k in fed funding, entitlements will recieve $40k, we will borrow $500k from china based on projected tax revenues. deficit and debt go up! under this scenario the only person i know who gets anything is the subcontractor who works for me who recieves the $8,400 earned income tax credit and $700 in food stamps per month.

in other words if the "rich guy" gets his money taken away by federal taxation, one thing is certain I DON'T GET A DARN DIME !!! and one guy i know gets assistance.

if he keeps his money and builds a house, all the taxes(maybe more) still get paid, hundreds people work and spend, hundreds of thousands of dollars of materials are sold, I MAKE A SHIZ LOAD OF MONEY AND THAT RICH BASTARD GETS A NEW HOUSE........

what the hell is wrong with that rich bastard gettin' a new house?

What he said! x2

[charly_t]

You all forgot one other job created by this new bigger home........at least one house cleaner ( maid ) for either full time or part time help.

[Buzz]

I can't believe that you guys think that what you're describing is supply side economics.