What Happens When We Run Out Of People To Tax

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Jccarlton
Posts: 1747
Joined: Thu Jun 28, 2007 6:14 pm
Location: Southern Ct

What Happens When We Run Out Of People To Tax

Post by Jccarlton »

Everybody on disability:
http://apps.npr.org/unfit-for-work
I hate the fact that even when I get a job this time I will have to be taxed to death just to pay for the mess we've got.
http://market-ticker.org/akcs-www?post=219104#discuss
The madarins have spent far to much time building houses of card and buying votes with unicorn dust to notice that we, bit by bit and rule by rule have been slowly turning the most dynamic, wealthiest and inventive economy the world has ever seen into the largest third world country.

hanelyp
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Re: What Happens When We Run Out Of People To Tax

Post by hanelyp »

Welfare riots if the checks stop. Food riots if the checks can no longer cover the cost of necessary food.
The daylight is uncomfortably bright for eyes so long in the dark.

choff
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Joined: Thu Nov 08, 2007 5:02 am
Location: Vancouver, Canada

Re: What Happens When We Run Out Of People To Tax

Post by choff »

When they run out of people to tax they resort to outright theft, see Cyprus.
CHoff

quixote
Posts: 129
Joined: Fri Feb 05, 2010 8:44 pm

Re: What Happens When We Run Out Of People To Tax

Post by quixote »

Potentially Canada as well. Note the key phrase "conversion of certain bank liabilities into regulatory capital."
The Government proposes to implement a bail-in regime for
systemically important banks. This regime will be designed to ensure that,
in the unlikely event that a systemically important bank depletes its
capital, the bank can be recapitalized and returned to viability through the
very rapid conversion of certain bank liabilities into regulatory capital.
This will reduce risks for taxpayers. The Government will consult
stakeholders on how best to implement a bail-in regime in Canada.
Implementation timelines will allow for a smooth transition for affected
institutions, investors and other market participants.

JoeP
Posts: 520
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Re: What Happens When We Run Out Of People To Tax

Post by JoeP »

hanelyp wrote:Welfare riots if the checks stop. Food riots if the checks can no longer cover the cost of necessary food.
Who knows what will happen. IMO I doubt that these welfare checks you speak of will ever stop. The cost of these programs are still relatively small when compared to the entire amount government spends each year. I think the US government will print more money to prevent any interruption in the cash flow for welfare. Yes, this is another kind of tax.

I'm more worried about the billions funneled into make-work type bureaucratic type jobs. We have hundreds of thousands of these and the salaries are quite good. The ROI for this is not very good when averaged across the board. Neither political party will want to just "haircut" these jobs or unemployment will go sky-high.

We could ease into a solution. Freeze spending via halt automatic increases for a few years. Then implement graduated cuts of 1%, 2%, 3% stages over several years. Make it also easier for businesses and manufacturers to operate stateside. Private enterprise can slowly absorb the people laid off from formerly lucrative bureaucracies.

There is no popular or political will for any logical solution however.

Enjoy the ride.

choff
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Location: Vancouver, Canada

Re: What Happens When We Run Out Of People To Tax

Post by choff »

Both hypothecation and rehypothecation are illegal in Canada, that is, the selling and reselling of debt instruments. Canadian banks have been getting around this rule by setting up agreements with mainly British banks, with the proviso that the money they put up for the trades never leaves Canada. When MF Global collapsed our depositors got 100% of their money back, though wether it was thru MF or government insurance who knows? Like every other bank they keep the derivatives off balance sheet/out of country, but because of the hypothecation rules, I suspect they simply walk away from any losses that could affect domestic customers.
CHoff

MSimon
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Re: What Happens When We Run Out Of People To Tax

Post by MSimon »


There is no popular or political will for any logical solution however.
This is true for so very many things.
Engineering is the art of making what you want from what you can get at a profit.

chrismb
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Re: What Happens When We Run Out Of People To Tax

Post by chrismb »

Jccarlton wrote:The madarins have spent far to much time building houses of card and buying votes with unicorn dust to notice that we, bit by bit and rule by rule have been slowly turning the most dynamic, wealthiest and inventive economy the world has ever seen into the largest third world country.
Why are you blaming the US for the decline of the British Empire?

(notwithstanding the 'war loan' the US made to the UK in WW2 that it insisted on having repaid - only just done in 2006...)

hanelyp
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Re: What Happens When We Run Out Of People To Tax

Post by hanelyp »

The US and British Empire have declined for the same reasons.
The daylight is uncomfortably bright for eyes so long in the dark.

choff
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Location: Vancouver, Canada

Re: What Happens When We Run Out Of People To Tax

Post by choff »

Hypothecation is legal in the US I believe 1 and 2/3 times over, in England there is no limit, so if the same debt gets resold a million times over and the original debtor defaults the chain reaction can be huge.
CHoff

mdeminico
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Re: What Happens When We Run Out Of People To Tax

Post by mdeminico »

Haven't any of you ever read Atlas Shrugged? THAT is what happens when you run out of suckers to leech off of.

mdeminico
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Re: What Happens When We Run Out Of People To Tax

Post by mdeminico »

Oh, and what an awesome article by the way... from NPR no less.

Diogenes
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Re: What Happens When We Run Out Of People To Tax

Post by Diogenes »

hanelyp wrote:Welfare riots if the checks stop. Food riots if the checks can no longer cover the cost of necessary food.



It is getting closer to the time when the chaff must burn. The Gods of the Copybook Headings will not be denied.
‘What all the wise men promised has not happened, and what all the damned fools said would happen has come to pass.’
— Lord Melbourne —

Jccarlton
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Location: Southern Ct

Re: What Happens When We Run Out Of People To Tax

Post by Jccarlton »

mdeminico wrote:Oh, and what an awesome article by the way... from NPR no less.
I thought so. They didn't get into the implications of what was going on though. The prblem is that the people in government have set up a positive feedback loop and the implications of that haven't set in yet.

Diogenes
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Joined: Mon Jun 15, 2009 3:33 pm

Re: What Happens When We Run Out Of People To Tax

Post by Diogenes »

Jccarlton wrote:
mdeminico wrote:Oh, and what an awesome article by the way... from NPR no less.
I thought so. They didn't get into the implications of what was going on though. The prblem is that the people in government have set up a positive feedback loop and the implications of that haven't set in yet.


I keep telling people this, but It seems that there are a LOT of people who do not comprehend what is a "positive feedback loop."


And to think there are so many engineers and scientists here who ought to understand this stuff.
‘What all the wise men promised has not happened, and what all the damned fools said would happen has come to pass.’
— Lord Melbourne —

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