I read a crazy idea from some nut-job proposing that the US Government give everyone a cool million, instead of doing bailout after bailout. At face value, it seemed absolute, positively ludicrous. Then I did a little number crunching. Based on my cursory research...
-We have a population of roughly 300 million people.
-The 2011 Federal Budget was 3.83 Trillion
-The 2011 Federal Deficit was 1.27 Trillion
This means that giving every man, woman and child in America a million bucks would be...
-Raise the total Federal Budget by about 5%, based on 2011 figures.
-Produce a one-time deficit increase of roughly 20%, based on 2011 figures.
However, the Federal, State and Local government could turn around and tax this money at the standard rate, which would give the Federal, State and Local government a HUGE influx of cash, which could (theoretically) be used for infrastructure and so forth (even though in reality it would probably be spent on $100 hammers for the military).
Even at a 33% tax rate, a family of four would still rake in a cool $2.6 Million (rounded down), affording the average family the opportunity to pay off every single debt, pay for kids' college, sock away enough money for a rainy day, and STILL buy a new car for every person in the house. Crazy? Maybe, but after a bit of reconsideration, it may not be as nutty as it first sounds.
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2 comments:
how about making the millionaires, the billionaires, and the just plain filthy rich shell out some big bucks..........now THAT'S radical
It's a nice thought, but money gets its value from its rarity. If everyone suddenly became millionaires, you'd be paying ten grand for a gallon of milk by the end of the week.
As much as people complain about bailouts for big businesses and the 'fat cats' that run them...keeping those businesses in business keeps people in jobs, which keeps people spending which grows the economy.
My solution? Taxing each and every stockmarket trade would put the burden on the same super-rich assholes who destroyed the economy by gaming the system.
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