The Real Problem Behind the Budget

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My drill sergeants always liked to remind us that we were costing Uncle Same 100k so if we got hurt doing something stupid they were going to charge us with damaging government property.

Sometimes I miss basic.
 
From Wikipedia
The federally budgeted (see below) military expenditure of the United States Department of Defense for fiscal year 2010, including the wars in Iraq and Afghanistan, is[8]:
Components Funding Change, 2009 to 2010
Operations and maintenance $283.3 billion +4.2%
Military Personnel $154.2 billion +5.0%
Procurement $140.1 billion −1.8%
Research, Development, Testing & Evaluation $79.1 billion +1.3%
Military Construction $23.9 billion +19.0%
Family Housing $3.1 billion −20.2%
Total Spending $685.1 billion +3.0%
* that didn't keep the formatting very well, just check out the link.
 
T

TheBrew

Honestly, there is really only one reason to use contractors: If a contractor dies, no one gives a fuck. It's not on the news, it's not in the papers. In every other way they are simply too inefficient.
Bah, I am plenty efficient. Though my contracting company actually hires competent people unlike, say, SAIC.
 
C

Chibibar

under the DOE? huh, learn something new every day.
heh. well it can be use as an energy source (well nuclear tech anyways) plus it sounds better than be under military ;)
(the above statement is post under pure opinion)
 
I figured, I would give some (really, really, really) rough numbers and if he cared to refute them then he could look it up. Obviously according to the two posts that show the budget, R&D is only a small part of the budget.
 
Then you've got projects the Pentagon tells Congress they don't want or need, only to have one of them respond, "I've got this factory in my district that says you do."
 
I figured, I would give some (really, really, really) rough numbers and if he cared to refute them then he could look it up. Obviously according to the two posts that show the budget, R&D is only a small part of the budget.
You know, I wonder how the "operations and maintenance" and "procurement" costs break down. If a large part of those costs are contract fees/mark-up to providers or inventory management (as opposed to straight material costs), there may well be a lot of room to re-do the bidding process and streamline operations a bit.
 

GasBandit

Staff member
Flat tax, but you don't pay ANY taxes on whatever is considered below the poverty line. So say $25k (or whatever), and that amount goes up with inflation and/or cost of living. So below that, 0%, above that, all pay 35% (or whatever). No exemptions, nothing. Make it absolutely as simple as possible, while keeping the idea that "we're not taxing you to live... at least on income tax." Other taxes are a whole other can of worms.

How many people in Canada/USA/1st world would not be paying ANY income taxes? Would be interesting.
Change it from an income to a sales tax, and you just described the Fair Tax. It sends monthly prebate checks for the expected amount of sales tax expenditure of the necessities of life for your family, abolishes all your federal income taxes, and replaces it with a national sales tax. Practical upshot? The poor still pay no/little taxes, the ultrarich still pay huge amounts of it, with the bonus of nailing the Paris Hilton types who are super rich but have no actual "income" to be taxed but spend like crazy. Plus, the added benefit of having no embedded taxation means it's cheaper to hire employees, salaries can be higher, products cost less, which pretty much works to cancel out the sales tax so that you end up paying the same on the bottom line WITH the sales tax as you did before WITHOUT... only without the IRS swiping a big chunk of your paycheck every other week.
 

GasBandit

Staff member
No thanks, give me Eriol's version.
Well, whatever method of tax reform we use, the fastest way to make it happen would be to eliminate mandatory withholding. If people actually realized how much of their money was being siphoned off, without it being disguised as a few hundred dollars each paycheck, there'd be a march. Or perhaps a riot.
 
C

Chibibar

You know. If I don't have to pay any taxes and just sales tax that would be cool, but I think it would be harder to regulate with current online economy.
 
The real problem would be getting people to accept a 30% markup on everything they bought. It could work out to be cheaper than income tax, but it's hard to make the mental connection.
 

GasBandit

Staff member
Yeah, because it doesn't help to prevent tax evasion by morons too stupid to save money back for taxes.
In my mind, protecting the idiotic from the consequences of their actions is one of the reasons we're in such trouble on a number of fronts.
Added at: 11:05
The real problem would be getting people to accept a 30% markup on everything they bought. It could work out to be cheaper than income tax, but it's hard to make the mental connection.
Current federal taxes on productivity are embedded in the cost of everything you buy. Eliminating those taxes would mean that the cost of those goods would fall a roughly equivalent amount to what the end sales tax would be. More
 
In my mind, protecting the idiotic from the consequences of their actions is one of the reasons we're in such trouble on a number of fronts.
So your solution is to put more people in jail then? See where the problem is here? It's not protecting the stupid, it's preventing the stupid from mucking up the entire system.
 
So your solution is to put more people in jail then? See where the problem is here? It's not protecting the stupid, it's preventing the stupid from mucking up the entire system.
I'm sure you can just get them a cabinet position. :rimshot:
 
Well, since private prisons are the fastest growing industry in the country, I guess we could just bring back debtor's prison.
 
C

Chibibar

Well, since private prisons are the fastest growing industry in the country, I guess we could just bring back debtor's prison.
Well, in Gas's tax system, there isn't any back taxes. You just pay the tax as you buy stuff. No more income tax, corporate tax, medicade and SS tax. So at the link he provided lets say it is a flat rate of 25% (23% seems to be the "average") then anything you buy you just pay 25% extra BUT
You don't get tax deduction from your paycheck anymore. Depending on what you put (0,1 or more) it takes a good chuck out of it.
 
Well, in Gas's tax system, there isn't any back taxes. You just pay the tax as you buy stuff. No more income tax, corporate tax, medicade and SS tax. So at the link he provided lets say it is a flat rate of 25% (23% seems to be the "average") then anything you buy you just pay 25% extra BUT
You don't get tax deduction from your paycheck anymore. Depending on what you put (0,1 or more) it takes a good chuck out of it.
Which, of course, would kill the poor. Can you imagine someone who makes $15k a year paying that much in sales tax?

That's my problem with this kind of thinking. It has a "Well, fuck 'em" attitude toward the people who will actually suffer under these kinds of changes. Offering to give the money back at the end of the year won't do them any good when they are starving and not making bills now. Hence, the problem with rebates.
 

GasBandit

Staff member
So your solution is to put more people in jail then? See where the problem is here? It's not protecting the stupid, it's preventing the stupid from mucking up the entire system.
Actually, MY solution is a sales tax in which the stupid don't have to do anything at all, except maybe know how to cash a prebate check.
Added at: 12:11
Which, of course, would kill the poor. Can you imagine someone who makes $15k a year paying that much in sales tax?
It'd be less than they're already paying in income tax. As a matter of fact, their prebate checks would actually be bigger than the amount of taxes they're expected to pay. And if they have more kids, the checks are also bigger.





A family of 4 under the fair tax would not only not be paying income tax (obviously), but the goods would cost the same, and they would also receive ~$550 per month in prebate. Tell me that $15,000 salary family wouldn't LOVE that way more. Yucky redistribution of wealth and all that, I know, but hey.
 
And the prebates are monthly Krisken. So I don't think that's a big factor either. And the fact that it's fixed to all (plus kids, which hopefully isn't hard to figure out) means administering such a system to send the cheques out would be really easy.
 
There is no way i can tackle the number of assumptions made in that mess. Congratulations, you win by me not caring to spend all day refuting every assumption you made.
 
C

Chibibar

There is no way i can tackle the number of assumptions made in that mess. Congratulations, you win by me not caring to spend all day refuting every assumption you made.
Couple of things. I am going to use pseudo numbers since I don't have my paystub with me.
Everyone who works in retail (usually) always pay Medicare, social security and federal income tax (usually) under Gas system, you don't pay these anymore. Now, as a single person, I usually pay around 20-30% of my check (give or take back in the day) I don't know what is the rate now.

On TOP of that, if I earn in the range from the chart above, I get a prebate check if I earn less than 10k a year (poverty level) of course that numbers go higher with + kids. So I get my paycheck with NO tax deduction (the only exception would be medical insurance that is NOT medicare and retirement fund) + 208 a month. That is a bonus to many.

Then you would pay 25% sales tax ONLY (only tax right?) That will get everyone since currently taxes are base on income and people find loophole. This way, you spend money, you pay tax.
 
And how is that easier than an income tax with no loopholes and excluding those who make less than 25K a year?
 
And how would you collect sales tax from companies outside of the country? Wouldn't it just push internet companies into Canada and Mexico? Shipping from those countries would probably still be cheaper than paying a 25% tax on almost everything.
 
The fair tax is actually closer to 30% to equalize with current revenue streams. A sales tax of that kind drives a lot of business underground (which is almost never mentioned in arguments for such a huge consumption tax). I think a balance of income tax and sales tax is just fine.
 
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