Quote:
Originally Posted by Flasch186
dont think Ive heard either candidate that they solely want to raise taxes, yet. Maybe I misheard and Ive also heard both candidates say that their ideas of taxes and budget have been altered and modified due to the current conditions.
|
I wasn't saying anything about either candiates, for what they say means next to nothing when dealing with the realities of Congress. It was just a response to the excuse of why they cannot slash budgets. I would think that keeping taxes the same in a downturn and cutting expenditures would be more favorable than keeping the same budgets and raising taxes in a downturn. The reality is that the budgets will increase and they will try to change some tax rates, which will result in a higher deficit. Changing tax rates will result in change in behaviors and will not necessarily lead to increased revenues. In a bad economy, it could actually mean less revenues as we are seeing many people/companies changing spending and capital habits. It is hard to predict but what they can control is federal budget expenditures and outlays.