Palin: “Those are corrupt bastards Chris!”

Try factoring in these items:

1. Just because there are 12,000,000,000 new jobholders doesn’t mean there will be any new taxpayers. Many of them probably won’t actually pay any taxes, and a large number of them might even qualify for Earned Income Credit, getting refunds greater than their withholding. The only tax we can be totally certain they’ll pay, is FICA.

When you factor that in… it begins to look like option #2 has the better chance of generating more revenue.

Let’s see, what else did you cover in Option #1:

“You naturally have to allow (in the first scenario) for the rapid and vast expansion of PRIVATE ENTERPRISE, NEW BUSINESSES, honest, REAL HOUSING GROWTH (based on loan/PAYABLE practices, proven SOLVENT for many, MANY THOUSANDS OF YEARS), and the EXPONENTIAL GROWTH AND SPREAD of inter-and-cross market COMMERCE (building/durable/non-durable/technical/etc./etc./etc.)…

Except that the “rapid and vast expansion” usually isn’t sustainable and signifies only the forming of a new investment “bubble.” We’ve seen that happen with the dot-coms, with housing.. what does it take for us to learn that “rapid and vast expansion” is no healthier for our economy than rapid and substantial weight loss by fad dieting is for our bodies? You can’t learn much about any program over thousands of years — too many variables come into play, technology changes radically as does geography to make one stage unrecognizable even to itself, if there were two stages that actually exist in both… it’s impossible to tell what the net effect of any one of them was…. The exponential growth of an economy usually happens as a result of a similar growth in population and work force. That isn’t likely for us. It happened during the 1890′s to 1920′s because of waves of immigrants, coupled with the Industrial Revolution. It happened in the 1940′s and 1950′s because women suddenly came to be a permanent part of the workforce, coupled with the communications and travel revolution… and during neither of these cycles was “outsourcing” a factor.

…adding many more TENS OF BILLIONS in corporate and sales TAX $$$ to the revenue stream, in the process. ALONG WITH…

Factor in the outsourcing. That many of these new entrepreneurs are in technology intensive, labor-light, information processing. That many of the new companies arising, if they manufacture anything at all, will choose to do it in China or VietNam or somewhere with cheap labor, so they can sell it here in WalMart and nobody will really mind if it’s crap and breaks quickly because it only cost a couple of bucks.

…marked concurrent REDUCTIONS in $$$$ needed for… “government” operations… making those existing, and ADDED tax $$$$ go even further in bringing our national debt DOWN… QUICKER.”

Do I take it from this that you seriously expect the budget to be balanced some time in the next 10 years, and it won’t be a fluke, but will be a regular event? NOBODY’s projections include this.

Rapid and permanent job losses haven’t been proven long term. The job losses began under Bush, and continued despite the tax cuts. Your standards of acceptable proof leave much unanswered. Rapid and long term business losses… whose, exactly? The auto manufacturers were incurring huge losses, and many thought they should have been allowed to fail… oddly, the same people who complained the loudest about high 10.4% unemployment, also screamed the loudest that the big 3, with all their jobs, should have disappeared from the scene. But other companies were still doing well. Many had record profits…. until they were forced to use true accounting. But they mostly took a one time charge and continued the same practices.

Infrastructure usually comes from government spending. The private sector refuses to make such investments in projects they can’t control and profit from, although they will if the government forces them to…. until they can get legislation passed exempting them.

Product quality…. has taken a back seat to product sales. High quality items aren’t profitable, because they last too long. Consumers don’t replace them. And they cost too much to produce. The consumer has a budget, and tries to keep within it, and that budget may not extend past this month or this year. They won’t buy the suit that will probably last them 20 years. They don’t want to still be wearing it 20 years from now, even if it does fit. They’d rather buy something that will only last a little bit longer than its style will.

They don’t want to buy the expensive pots and pans from Williams-Sonoma. They’ll get the cheap ones from WalMart or Target. The ones that were made in China or Brazil or Taiwan.

If you want tax cuts to create American jobs… they have to be tied to American jobs. If you want companies to stop outsourcing… you have to take the profit out of it.

When I lived in Madrid, we owned race-horses. We had a small stable of about 6 at the most. Sundays, we went to the track. That’s the only day they were open. Franco was running the country then. They kept crime out of horse-racing by keeping the money out of it. The largest purse of the year was a 1,000,000 peseta total purse, for 1st thru 4th place winners. With the peseta at 60 to the dollar, that was roughly $15000 altogether. The lowest wager was 10 pesetas, or about 15 cents. No organized crime was going to get in on this stuff…

Likewise, the way to stop companies from outsourcing jobs, is to take the profit out of doing it. Simplest way to accomplish any kind of social engineering like that, is with taxes, a method that goes back to Alexander Hamilton and George Washington and the Whiskey Rebellion.

Have I answered you?