[Loki]

$this->bbcode_second_pass_quote('allenwrench', 'I') heard that the average taxpayer will be paying an increase to their tax bill of about $700 to $800 a year to fund clean and renewable energy once these plans kick in.

[smallpoxgirl]

$this->bbcode_second_pass_quote('Ludi', 'I') wonder how the Obama and McCain tax cuts will work out after this....

[Cashmere]

f-ck funding renewable energy. It's too late for that.

My renewable energy grows for free on the back 40.

I'd rather keep my tax money, thank you.

[phaster]

Yesterday on my way down to the airport I was listened to a pod cast interview with Daniel R. Amerman on Credit Default Swaps/ link , and had one of them eureka moments; why not raise taxes to fix the system!!!!

Yeah I know it might sound counterintuitive increase taxes at a time when there is an economic downturn, but if ya read on it might make sense...

We know "credit default swaps" otherwise known as CDS contracts have been widely used by hedge funds and others to speculate on the viability of banks, other financial institutions such as brokerage houses, and auto manufactures.

These bets on various companies were not made on any regulated exchange and no one knows the exact size of the problem; much like we don't know the actual oil reserves in the ground in secretive nation states like Saudi Arabia, Iran, etc.

Daniel Amerman mentioned in the interview "Credit default swaps" are similar to homeowners insurance, because the buyer pays a premium and, in return, receives a sum of money if a specified event occurs. However, unlike homeowners insurance the buyer of a CDS contract does not need to own the underlying security, in fact the buyer does not even have to suffer a loss from the default event.

I've read there might be as much as 70 trillion in CDS betting slips that will never be able to be paid off and this is why Warren Buffett called these financial derivatives financial weapons of mass destruction. Basically the uncertainty caused by credit default swaps is having a paralyzing effect on the credit markets and the real economy.

So I was wondering why can't the knuckheads in the US congress use their power to make tax laws, to in effect make CDS contracts worthless by imposing a 100% tax on CDS profits (with a three day tax settlement period) on owners of CDS contracts who do not own the underlying security. A well crafted rule like this would remove much of the uncertainty in the market and not penalize owners of of CDS contracts who own the underlying security.

Also with the $hitheads from Detroit: link asking for $25 billion to save the big three auto makers and justify the fleet of gulfstreams, I also thought wouldn't this be the right time to increase taxes on gasoline say 20 cents a year for the next ten years and use the funds to retool and make the US auto industry more completive?

This way we as a nation don't add more debt for future generations by "loaning" the auto companies some money (that might not get paid back) so they can continue the downward business as usual trend.

Also by increasing prices at the pump with targeted taxes for a troubled sector in the US economy, US consumers will become conditioned to use a non renewable resource more efficiently.

So now that I've figured out how to fix the US economy by increasing taxes, I think I deserve 100 hours blocktime in airforce one by president elect Obama, same goes for the auto companies they should each give me 100 hours blocktime in a gulfstream 550, or at the very least I'd like an ig-nobel prize in economics. link

Seriously though, since I'm not a trained lawyer or a formally educated economist what obstacles and downsides do ya all think would there be to using tax laws to help out the auto industry and indirectly regulate an unregulated market in "Credit default swaps?"

[DJSNOLA]

Yeah thats a great idea tax me even more to pay for social programs not to mention all the previous bailout(tax payer money) stolen for the superwealthy. Its always the small- medium sized business owner that gets the shaft! I just dont understand whats so difficult about just cutting spending! Sooner or later those that finance this country's debt will force us to make that decision.

[lawnchair]

$this->bbcode_second_pass_quote('phaster', 'I') also thought wouldn't this be the right time to increase taxes on gasoline say 20 cents a year for the next ten years and use the funds to retool and make the US auto industry more completive?

[Bas]

I've got a eureka moment: how about cutting the defense budget? IMO that money is better spent on a national healthcare plan. (why defend a people you can't even properly take care of?)

[idiom]

If you just windfall all the CDS payouts and then pipe them back to the payees you might unravel the whole thing a lot more easily.

[vtsnowedin]

Why not just make all third party CDSs illegal? Then require all CDSs to be traded in the open with both parties disclosed.
The gas tax is a good idea. Unpopular but a good idea. Raise it every six months on a pre announced schedule so people can plan accordingly. This would drive down demand for gas hence demand for imported oil would go down and some of the 700 bil we are sendind the terrorist each year would stay here. I wouldn't spend the money on the big three. You would just be subsidising the UAW. Fix your roads ,bridges and railroads and paydown some of the public debt.

[Fishman]

Wow, radical idea, why not live within our means!!!!. I'm ok with some cut in military, how about those group of 8000 lb gorillas in the room, Medicaid ,Medicare and Social Security? And national health care, at this point the obama national health care plan could only afford two bandaids and a tylenol for us all, even if we make all the cuts and increased the taxes. Though the chinese may not call their debt in because of crashing the system, that doesn't mean they will continue to loan either.

[DarkDawg]

No taxation without representation!

The problem with taxes is not the idea, it's the implementation. A tax is meant to be used for a specific purpose but usually just goes into the general fund and spent on pork and the military and other crap that had nothing to do with the original intent.

Look no further than the $700B bailout. Does anyone know where that money is actually going or who's pockets it is lining?

As long as there are people still stupid enough to vote for thieves and criminals like Ted Stevens to run the government, then giving them your tax dollars is equally stupid. Thankfully, he lost his re-election bid but you get my point.

[lateStarter]

No amount of tweaking, of any nature, is going to 'fix' this. No amount of whitewash is going to prevent this house of cards from collapsing. The kindest and most-humanitarian thing would just be to let it take its natural course while trying to put ourselves in the best possible position to get back to 'living' once all the pieces have been sorted out.

The sad thing is that it probably won't be allowed to follow that path. Too many vested interests trying to maintain the status-quo.

[Ferretlover]

How about Everyone just actually pays they taxes they owe? Those "I owed $200,000, but thanks to _____ , I only had to pay $40,000" commercials really make me angry. GGGrrr...
And, how about towns, cities, counties, states use the tax income to maintain and repair the infrastructure instead of paying incredible amounts of money for "consultants," statues, new benches for the parks, "three day all expenses paid" retreats to meet to solve a problem that could have been solved in a half hour meeting back in the office, etc.?

[emersonbiggins]

$this->bbcode_second_pass_quote('Fishman', 'W')ow, radical idea, why not live within our means!!!!. I'm ok with some cut in military, how about those group of 8000 lb gorillas in the room, Medicaid ,Medicare and Social Security? And national health care, at this point the obama national health care plan could only afford two bandaids and a tylenol for us all, even if we make all the cuts and increased the taxes. Though the chinese may not call their debt in because of crashing the system, that doesn't mean they will continue to loan either.

[vtsnowedin]

Emerson;
Do you have a source for that chart? It dos'nt jive with any figures I can goggle up. Particularly the very complete pie chart on the 08 budget that wiki has. I know the 08 budget is now blown to kingdom come but not by the military budget. Lets play with real numbers shall we.

[phaster]

$this->bbcode_second_pass_quote('idiom', 'I')f you just windfall all the CDS payouts and then pipe them back to the payees you might unravel the whole thing a lot more easily.

[vtsnowedin]

http://en.wikipedia.org/wiki/Image:Fy20 ... y.png#file

[phaster]

$this->bbcode_second_pass_quote('vtsnowedin', 'E')merson; Do you have a source for that chart? It dos'nt jive with any figures I can goggle up. Particularly the very complete pie chart on the 08 budget that wiki has. I know the 08 budget is now blown to kingdom come but not by the military budget. Lets play with real numbers shall we.

[emersonbiggins]

$this->bbcode_second_pass_quote('vtsnowedin', 'E')merson;
Do you have a source for that chart? It dos'nt jive with any figures I can goggle up. Particularly the very complete pie chart on the 08 budget that wiki has. I know the 08 budget is now blown to kingdom come but not by the military budget. Lets play with real numbers shall we.

[TommyJefferson]

How about we all pay NO taxes and pay directly for everything we need.

Wow. Crazy huh?

People actually paying for their own health care, defense, and transportation.