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Posts Tagged ‘Population’

Why does this pose a problem during the Great Depression?

June 30th, 2013 2 comments

“More than 60% of the population was living below poverty levels, while a mere 5% of the wealthiest people in America accounted for 33% of the income, and the richest 1% owned 40% of the nation’s wealth."

Why does this pose a problem during the Great Depression?

The biggest problem was because there was a currency shortage, so to speak, in the country. With so many unemployed, few people had ready cash to use on anything but the most basic necessities.Those who did have the large cash reserves(i.e. the 1%) were unwilling or unable to spend their money to generate new jobs. There was a variety of reasons. Loss of potential customers, fear of government policies(look up the tax rate on those 1%ers back then),or being rich but not having liquid assets(owning land, industries, or other properties, but not much cash).
Years under the Roosevelt administration and his attempts to overcome the Depression failed, until the start of the war. Only then did currency begin to circulate more, though ironically the government then took actions to cut back on the money in circulation to curb inflation. War Bonds and rationing were two large tools. No matter how much money you had, in theory, without ration cards you could not buy products. War bonds helped finance the war as helping to avoid inflation.

what is wrong with repealing the 16th amendment, eliminating the income tax and going to a national sales tax?

May 28th, 2012 7 comments

A flat national sales tax on everything, homes,stocks, bonds, labor, food, in my humble opinion, could generate enough revenue to eliminate the income tax, which is nothing more than a social engineering tool with it’s current loopholes and complexities. Since the biggest issue against it seems to be its bias against the poor, we could have a single exemption for all on the first 15k spent. It could be implemented just like current state sales taxes and be very low. Probably less than 5 percent if it was all inclusive. The wealthy would pay more because they spend more, especially if you include the tax on investments. Can any of you explain logically why such a tax sytem would or wouldn’t work?

Income tax was established because the overall tax burden in this country was falling on the part of the population that was least able to pay it. If you think the poor should pay more tax and the rich less, they repealing the 16th amendment would be a good idea. I don’t.