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The current Economic Problem 4/3/2004 5:58:09 PM
Political Candidates and their affiliates rarely define the actual economic issues facing society, basically because they have no ready solutions for the real problems. Here is the real economic issues not heard from the Candidates.
Most Readers have some grasp of the Bush Tax Cuts, which he desires to make permanent, at a cost of a doubling of the National Debt over the next decade. Kerry (Democratic) Tax policy, though, makes no mention of repealing the Business and Corporate tax concessions, simply allowing them to run out. This will add some two trillion to the National Debt, if Government expenditures remain the same. Kerry's increased tax on the wealthy Incomes will only produce approximately $77-130b per year more than current Bush taxation, through the next four-year administration. Economic stimilus, if it exists at all, could not quantify greater than two percent of the total economy, from the remission of the $77-130b of tax revenues. This tax remission, or lack of it, cannot produce economic performance.
Neither Bush or Kerry proposes any economic policy which will even limit the expansion of the National Debt. Both Candidates and their Parties accept an increasing expansion of the National Debt. All acqueisse to an actual accelerating growth of that Debt expansion in percentage terms.
All adhere to the principle of Keynesian stiimilus, though Government deficit spending is actually artifically inflating resource prices, inside a matrix of declining actual domestic production. This overall increase of Resource pricing is estimated as over 8% of total Cost by the Author, with a reduction of domestic production solely due to this inflation of over 14% of the current production levels. Each percentage loss of domestic production can be seen to cost between 700,000-900,000 Jobs.
Business and Corporate Tax law is currently written so effectively, that tax credits and expensing accounting can cancel all but a minimal payment--the high listed tax rates evolve into an actual or real tax rate of less than three percent. Such Business tax revenues equaled an amount equivalent to Personal Income tax revenues in the 1950s. Today, they equal an amount smaller than that paid by Personal Income taxation, though their total yearly revenues have increased to approximately 875% of the total of taxable Personal Income in this Country.
All statistics used in this article have been the Author's own estimates, which he believes are relatively accurate, though he cannot get actual verification of the numbers. Listed Economic documentation is extremely hard to find, as least for this Author. lgl
