Each Additional $1 in Taxes....Reduces Spending By $3....?

libertad, your question confuses me. Is it smartass rhetorical?
Here's what the article said, for the main points at least:

""“Thus Barro and Perotti are saying that each $1 increase in government spending reduces private spending by about $1, with no net benefit to GDP. All that is left is a higher level of government debt creating slower economic growth.”

“The most extensive research on tax multipliers is found in a paper written at the University of California Berkeley entitled The Macroeconomic Effects of Tax Changes: Estimates Based on a new Measure of Fiscal Shocks, by Christina D. and David H. Romer (March 2007). (Christina Romer now chairs the president’s Council of Economic Advisors). This study found that the tax multiplier is 3, meaning that each dollar rise in taxes will reduce private spending by $3.”""

So, the more we're taxed the less we consume.

When our disposable income is reduced, we have less disposable income. How astute.
 
Quote from IanMacQuaide:

libertad, your question confuses me. Is it smartass rhetorical?
Here's what the article said, for the main points at least:

""“Thus Barro and Perotti are saying that each $1 increase in government spending reduces private spending by about $1, with no net benefit to GDP. All that is left is a higher level of government debt creating slower economic growth.”

“The most extensive research on tax multipliers is found in a paper written at the University of California Berkeley entitled The Macroeconomic Effects of Tax Changes: Estimates Based on a new Measure of Fiscal Shocks, by Christina D. and David H. Romer (March 2007). (Christina Romer now chairs the president’s Council of Economic Advisors). This study found that the tax multiplier is 3, meaning that each dollar rise in taxes will reduce private spending by $3.”""

So, the more we're taxed the less we consume.

When our disposable income is reduced, we have less disposable income. How astute.
More...

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Exactly.....

The politican'ts want voters to believe that "help is on the way"....when in fact....the opposite is true....

You know my position 10/5 C Tax as a solution....
Township based....State directs Fed staff....by mandate...
Eliminate the two party system....it does not work....
Eliminate legal largesse
Education by internet
Democracy by internet
New Worldwide Stock Exchange

...........................................................

The article just adds a few academics in agreement with the fact that big govt. just takes away from a diminishing base....Exactly what the US is doing....

Just beating a dead horse....

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Until the US implements what actually will work....

THEY are on a one way street...."DOWN".....
 
Anyone that believes that Nobama is trying to help the economy is really naive. He is changing America from what was left of capitalistic America to a central government controlled tyranny.He is destroying business so that the people will turn to government for help.
He is using the tactics of ACORN to achieve his ends. Overwhelming the system to win. It is a very carefully crafted implementation by the most powerful community organizer. It is a well laid plan and the sheeple let it happen.

Reagan had it right. The ten scariest words in the English language are" I am from the government and I am here to help.".
Incidentally I liked California before Reagan. He raised taxes not reduced spending to balance the books.
 
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