So here's a nonsequitor, but I ask everyone this and nobody can tell me why it's a bad idea, so I figured I'd ask some smart engineers the question and see if I can dig out an answer. It's not engineering related, so I don't want to start a new thread on the subject, but this one has turned into a tax argument anyway, and it's my thread, so I feel justified in further pushing the derailment.
Right now we borrow or print 40 cents of every dollar we spend, in terms of US federal spending. We tax 60% of spending, and we borrow/print the other 40%.
The Reds and the Blues argue whether this number should be 39% or 42%, but none of them except for maybe Ron Paul think we should actually balance the budget, and all of them seem to think that a debt to GDP ratio of around 80%, which is what we've got, is no big deal. They always go back to this debt/GDP ratio to justify never ending deficits.
Well if that's the case, why don't we just cut federal spending by 60% and do away with taxes entirely? Just borrow and print the whole shebang? Wouldn't need any "tax incentives" at all at that point, and corporations all around the globe would flock here. Couldn't hurt the economy. Debt wouldn't be growing any faster than it is now. All the laid off federal workers could get jobs in the economic boom it'd cause. Social Security would take a hit, but SS earnings wouldn't be taxed anymore, so that'd mitigate it some.
What am I missing?
Hydrology, Drainage Analysis, Flood Studies, and Complex Stormwater Litigation for Atlanta and the South East -