[usakos]

Hey,

Watch this video on YouTube and tell everyone what you think when you watch it.

Here is the link to the video;
YouTube - Yes We Can - Barack Obama Music Video

[SendBlast]

romney just dropped out

[mattSantill]

Yeah I watched this video before... like all his speeches ... extremely inspirational.
I really hope he is our next president... I will be campaigning in Ohio this month

[tazman9r]

It's a pretty song, and a pretty speech.

I'd like to know how.

Many are crediting Mr. Obama with sounding like John F. Kennedy. President Kennedy lowered the TOP tax bracket from like 90% down to like 25% (not totally sure on the numbers, but it was enormous), as well as reducing taxes for the other brackets. Mr. Obama's 2 year record in the senate show him to be basically identical to Hillary Clinton, who has "a million ideas for this country, and America cannot afford them all." Mr. Obama has said he would have "enforcement" for those families who do not have health insurance for their children. Unless he's gonna put people in jail, sounds like either a new tax or wage garnishment to me. From my own experience, if you don't have a job that provides both decent health insurance AND a paycheck large enough to pay for it, a lower middle class to poor family cannot afford health insurance, much less the single parent on one income.

I am inspired by a leader who tells me how to get to the promised land. Even If I disagree with him or her at the outset, if their method proves true, I will back them. So if Mr. Obama gets his chance in the big chair, I will watch and wait. Time will tell if the CHANGE he proposes brings about the HOPE he has promised, and improves other's perception of us in the world.

I am not inspired by someone who speaks with pretty flowery language yet says nothing.

And, no, I have not been very inspired over the past 7 years. At least I understand what this guy is saying, though I may not agree very often.

I bought into the pretty language of Bill Clinton, too. He, also, could speak for long periods of time, yet say nothing. I'll look for substance from now on.

The problem is, there is not much substance out there right now.

[BusinessAdviser]

Originally Posted by mattSantill

Yeah I watched this video before... like all his speeches ... extremely inspirational.
I really hope he is our next president... I will be campaigning in Ohio this month

Why Obama?

[BusinessAdviser]

Originally Posted by tazman9r

Many are crediting Mr. Obama with sounding like John F. Kennedy. President Kennedy lowered the TOP tax bracket from like 90% down to like 25% (not totally sure on the numbers, but it was enormous), as well as reducing taxes for the other brackets.

So it seems that you support a reduction in income tax. What do you think of Huckabee? My understanding is that he is proposing an elimination (someone please correct me where I have been misinformed) of the income tax, replacing the income with a consumption tax? What does everyone think of this?

[jasaunders]

From an economic perspective, most economists don't recommend this. Obviously, consumption is what drives our economy. On a microeconomic level, the indifference curve shifts for such an income transfer, making it more unfavorable of a position to be taxed on consumption (ie. people actually prefer to be taxed on income, when given the alternative).

[BusinessAdviser]

Most economists don't recommend this? I haven't heard that before. It's news to me, especially considering the billions of dollars that will taxable under a consumption tax that are untaxable under an income tax.

And people would actually prefer to be taxed on income? Doesn't make a whole lot of sense to me. With an income tax, it's taxed whether people spend it or not; they have no choice. With a consumption tax, it's only taxed if and when they spend it; they have a choice.

Mind providing a bit of support for your statements? I would actually just like to read them.

[usakos]

I just need clarification on this, so please correct me. What tax system they use in the UK, isn't that the VAT system, and isn't that similar to the consumption tax? If so, then isn't that why most Brits, especially high net worth individuals rather prefer the US tax system, which is the income tax rather than the VAT? I haven't had sleep in a while, so i cant think straight right now.

[BusinessAdviser]

Here's my point:

Yes, the majority of Britain's tax revenue (as well as that of every other industrialized nation in the world except the United States, as far as I'm aware) comes from a consumption tax rather than an income tax. That is not the point though. I'm not debating what people would prefer, I'm offering my thoughts as to what would more greatly benefit the nation as a whole.

I think that the US would benefit from shifting to a consumption tax to fund the majority of its tax revenue for a couple reasons:

1) A consumption tax will be able to capture revenues from illegal acts, whereas an income tax cannot. For example, a drug dealer will not report any income derived from selling drugs, but he will still spend that money to purchase items. This amounts to billions of dollars in lost tax revenue each year.

2) A consumption tax encourages saving, as it would not be taxed until it were spent. Although right now (in the short run) the economy would be stimulated by increased spending. However, the economy and nation as a whole would be better off if Americans saved a greater portion of their income.

What does everyone else think?

[BusinessAdviser]

Originally Posted by usakos

most Brits, especially high net worth individuals rather prefer the US tax system, which is the income tax rather than the VAT?

Again, please provide support for this statement.

[usakos]

Ok, point taken.

But isn't that the whole reason like now for a tax rebate, to infuse money into the hands of the consumer to encourage spending, rather than stack your money into savings, which simply does not help economic overall?

So, if the who reason of consumption tax is to encourage consumer savings, then where will economic growth fit in?

China's economy is headed to becoming the world's largest economy in just a few years, isn't that because of high spending and not savings?

For me, I am against consumption tax, because that depends on what you buy and not your annual income. So, if I earn more than my neighbor and he goes to buy a BMW, then he will pay high consumption tax because of what he's buying, and if I go and by a lemon car, than I pay less than him.

That's why consumption tax will never pass through the congress and or senate no matter who introduces it. It's bad for the economy, it's worse for America. It should simply be erased from our thoughts. Period.

[mattSantill]

Without a doubt if you feel Economics is the most crucial issue of this race... you would want to vote for Ron Paul.

I'm rating my candidates as:

1. Barack Obama
2. Ron Paul
3. Hillary Clinton

The reasons I am choosing Barack are for his stance on many different issues. But number one would be the War in Iraq.... he opposed this war from the beginning. This would make the democratic argument much stronger when facing a debate with John McCain, because Hillary voted in favor of this war. The war will be the biggest issue in this race, and with hundreds of Americans dying a month it very well should be.

His stance on poverity and civil rights within the US are the best I've seen.
Barack will help bring college education to those that can not afford it. Tuition has is up 40% in the past 5 years.... this needs to change.
I personally have accumulated $30,000 in student debt and I received FULL financial aid ... I'm sure you all can relate to surviving off ramen noodles for weeks at a time.
Affordable healthcare for every American is another huge issue.... This is America the greatest country on Earth and we can not provide our children with affordable healthcare? We are spending Billions a month on a War that should have never been fought in the first place and we can't afford healthcare?

Ebolishing the tax cuts for companies that ship American Jobs overseas... and rewarding the companies that help achieve our economic growth.

Inner city schools need HELP... if you want to change America start with the school system.... we need to pay the teachers that work in struggling cities. Stories of teachers competing for after hour jobs at Wal-mart are to familiar.

30% of the city I grew up in lives in poverity not because they choose not work but because there aren't any decent paying jobs...
My brother is struggling to raise his two children making under $8.50 an hour. We need to raise the minimum wage.... so that hard working Americans don't have to worry about how they will survive.

Barack represents the change that many of us don't just want.. but need.

[BusinessAdviser]

Originally Posted by usakos

Ok, point taken.

But isn't that the whole reason like now for a tax rebate, to infuse money into the hands of the consumer to encourage spending, rather than stack your money into savings, which simply does not help economic overall?

The reason for the tax rebate is America's obsession with the short term. We currently spend more than we MAKE, due to access to credit. The tax rebate is to keep politicians in power. To keep the economy afloat long enough to get them re-elected. Additionally, I'm sure you're aware that as savings levels increase, interest rates drop, and money becomes less expensive to borrow, thus creating a new infusion of money into the economy.

If Americans are encouraged to save, yes, the economy will stumble in the short run, possibly, but the economy will be better off in the long run. The economy will pick back up, as it is cyclical, and eventually, as Americans age, they will spend the money. Where the economy is better off is when Americans are supporting themselves after retirement with their savings rather than others' current earnings.

Originally Posted by usakos

So, if the who reason of consumption tax is to encourage consumer savings, then where will economic growth fit in?

When will the economic growth occur? In the future, in the long run, when Americans who are currently too caught up in spending NOW NOW NOW instead begin to save for retirement and then spend their savings rather than OTHERS' CURRENT EARNINGS. Also, the billions of dollars in increased tax revenue from illegal trades will then be pumped into the economy through governmental spending to make up for spending lost to saving. As you can see, overall, the economy would be better off.

Originally Posted by usakos

China's economy is headed to becoming the world's largest economy in just a few years, isn't that because of high spending and not savings?

It's due to Americans sending so much money to China without reciprocal Chinese spending in America. It has nothing to do with the Chinese marginal propensity to consume.

Originally Posted by usakos

For me, I am against consumption tax, because that depends on what you buy and not your annual income. So, if I earn more than my neighbor and he goes to buy a BMW, then he will pay high consumption tax because of what he's buying, and if I go and by a lemon car, than I pay less than him.

So you're against Americans making a conscious decision to save for retirement rather than blowing money on luxuries? You do understand that the more others save, the less YOU have to pay to support them, right?!

Originally Posted by usakos

That's why consumption tax will never pass through the congress and or senate no matter who introduces it. It's bad for the economy, it's worse for America. It should simply be erased from our thoughts. Period.

Consumption tax will never pass because it's too difficult to adopt an entirely new tax system, not because of any reason that you've proposed, as you haven't even proposed good support for income tax over consumption tax. Focusing on the overall benefit to the economy, a consumption tax IS good for the economy, when compared to an income tax, so it makes sense that it is good for America.

Erased from our thoughts, huh? You could have just said, "Let's all be ignorant and not consider all options, especially better ones than the current system." Haha.

Let me guess...Econ major in college?

[BusinessAdviser]

Originally Posted by mattSantill

Without a doubt if you feel Economics is the most crucial issue of this race... you would want to vote for Ron Paul.

I'm rating my candidates as:

1. Barack Obama
2. Ron Paul
3. Hillary Clinton

The reasons I am choosing Barack are for his stance on many different issues. But number one would be the War in Iraq.... he opposed this war from the beginning. This would make the democratic argument much stronger when facing a debate with John McCain, because Hillary voted in favor of this war. The war will be the biggest issue in this race, and with hundreds of Americans dying a month it very well should be.

His stance on poverity and civil rights within the US are the best I've seen.
Barack will help bring college education to those that can not afford it. Tuition has is up 40% in the past 5 years.... this needs to change.
I personally have accumulated $30,000 in student debt and I received FULL financial aid ... I'm sure you all can relate to surviving off ramen noodles for weeks at a time.
Affordable healthcare for every American is another huge issue.... This is America the greatest country on Earth and we can not provide our children with affordable healthcare? We are spending Billions a month on a War that should have never been fought in the first place and we can't afford healthcare?

Ebolishing the tax cuts for companies that ship American Jobs overseas... and rewarding the companies that help achieve our economic growth.

Inner city schools need HELP... if you want to change America start with the school system.... we need to pay the teachers that work in struggling cities. Stories of teachers competing for after hour jobs at Wal-mart are to familiar.

30% of the city I grew up in lives in poverity not because they choose not work but because there aren't any decent paying jobs...
My brother is struggling to raise his two children making under $8.50 an hour. We need to raise the minimum wage.... so that hard working Americans don't have to worry about how they will survive.

Barack represents the change that many of us don't just want.. but need.

First question: How do you feel about taxes? The tradeoff for increased governmental spending on such things as healthcare and inner city schools is increased taxes.

Second question: What do you think is the result of raising the minimum wage? This is the biggest problem with politics/the economy. Voters don't understand the ramifications of what they're voting for. And you're an MBA student! Tsk, tsk. I'll let you comment before explaining the economics of an increase in the minimum wage to you.