Musicmystery -> RE: President Obama says "The private sector is doing fine" (6/10/2012 8:01:57 PM)
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ORIGINAL: TheHeretic quote:
ORIGINAL: Owner59 Yes.....the private sector IS doing fine...... No, Owner59, the private sector most certainly is NOT doing fine. A portion of problems in the public sector are a direct reflection of that. Bad policy, and bad deals, such as Governor Walker has been dealing with in Wisconsin are another bit, but for this, let's set that aside. The state and local governments have problems, because not enough money is coming in. But where does that money come from? Let's simplify for you, shall we Owner59? People who go out and earn money, pay taxes. People who own property, pay taxes on that. In most places in the US, when people go out and buy things, there is a tax on the sale. When people don't earn any money, they don't pay income tax. Now here in California, the property taxes are based on the value of the property, so when property values go to shit, guess what happens to the tax base? It goes to shit, too. Sales tax is a percentage of what is spent. When people spend less money, the government gets less taxes. See people back to work, and there will be less drain on those local resources as well. These public sector issues (separate from the pension bombs and bad deals) are a sympton of the crap economy, not the important part of the problem, as the President would seem to believe. 1) What does that have to do with the private sector? 2) Where do you suppose GDP is coming from? 3) California is a mess of its own making, and hardly representative of the nation.
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