What would happen to USA if all taxes paid by tax payers were cut in half next year?

Question

across the board?

Please describe what would happen throughout the country and its people, our miltary, our borders, our schools, etc.....

big N.....you did not answer the question and did not describe the scenario that would ensue. I need more details

Answer 1

First you would have to have budget cuts. Americans would then spend the "extra" income putting the money back into the economy. The economy would grow probably at an alarming rate, generating more tax revenue as incomes would climb. Home ownership would increase, driving up property tax revenue for schools and local governments. The loss of tax revenues via the IRS, would actually be a short term loss as those dollars came back ten fold from the private sector, creating more tax dollars then the previous year, prior to the cuts, this would increase GNP and increase the available budget for government services across the board.

Answer 2

The economy would soar, it’s basic economics. When you work you get paid. Whether you are self employed or work for a small business, large company, or are a major industry taxes are paid on the money you take in; paycheck, contract payment, or gross revenues. This is the idea anyhow. There are some who skirt by on the tails of others but that’s beside the point. Well not really, they need to be eliminated, but I digress. This money is then used to pay for the basic infrastructure for the operation of government and municipalities like your civil servant paychecks, US President, Congressperson, Senator, Governor, Dept., city and state employees like city hall, council members, fire dept., , state patrol, sheriffs and police dept all levels of government. Then there’s the maintenance of these facilities. These things compose the make up of the US budget.

When tax cuts or even tax rate cuts are made people like you, me and the average Joe take home more money in our pay checks because the government who we sustain has taken less (stolen less) from you and me. The economy would suffer if EVERYONE took that extra cash and put it into savings but we don’t do that. We spend it. It always happens. The more we make the more we buy. When tax cuts are made people take home more money and they go out and buy, buy, buy! This generates more business/corporate revenue, more business/corporate revenue more tax revenues for the operation of OUR infrastructure/government. Remember, we talked about this in the beginning? When Uncle Sam steals less from me, I tend to be more charitable and giving. When the fat bastard steals from me I have less to get by on I get hungry, when that happens I get irritable, when I’m irritable I’m less giving and even less charitable. Are you libs picking up on any of this?

Answer 3

Private sector economy would expand,as it did when President Bush pushed his tax cut through.When the economy expands,net result is an increase in job growth as well as an increase in tax revenue due to a growing economy.
Downside would be a decrease in government "entitlement" expenditures,however the growing economy will have jobs available for those formally setting on their butts and living off the government tit.
Military will be forced to do more with less,this is not new to them.
Public schools will have to put off "new and improved" buildings(I went to a non air-conditioned High School in Texas,still managed to get a very good education)
Those wishing to go to a university will either have to pay more for student loans or God forbid,get a job and pay for their own education(again we would have a booming economy,so jobs will be available,and it can be done,I worked nights and was a full time student when I went to college)

Added:
Had another thought concerning "higher education".Ivy League schools now cost in the $30,000.00 to $40,000.00 range per year to attend;first rule of sales is to "charge what the market will bear",I wonder what would happen to the tuition rates if people just stopped applying for admission to those universities;maybe they would see the light and lower their fees?

Answer 4

Basically Ron Paul is saying we should do more than that. He is saying we should cut all personal income tax.

Sounds crazy?
Listen to this.

Our current spending is twice what it was in the year 2000. Are people saying we couldn't cut our spending to what it was 7 years ago? Because if they are saying that, they are ignorant.
The IRS only brings in 1/3 of the budget. That means that cutting spending in half, would mean that we could cut all personal income tax and more.
We need to stop spending money on wars, pork barrel, campaigns, foreign policy and aid, and use our money to make AMERICA better. We could have a 0% deficit, and China could stop making money by loaning us cash to fight our wars.
Please don't insult me and call me crazy. What is going on right now IS NOT WORKING. Please stop trying to do the same thing to fix a problem that doesnt go away.

Also, stop beleiving what those in power tell you to stay in power.

Answer 5

if that were to happen, i like to think our domestic issues would over-ride our foreign issues. this is all my opinion,
1. the war would cease immediately.
2. foreign aid and subsidizing would come to a halt.
3. our relations with the UN would suffer due to our lack of funding the majority of it.
4. military bases would close abroad.
5. throwing money at ridiculous issues would cease and congress would be a hell of a lot more conservative in regards to spending.
domestically:
1.a lot of social programs, grants, and subsidizing would cease.
2. our military budget for research would be cut drastically.
3. the EPA would have to lighten up on several issues to accommodate the budget shortfalls.
4. the soc. sec. would need to be re-evaluated.
5. the banking institutions would need a whole entire different business strategy to adapt.
6. commerce would slow down due to lack of funding of other countries and we'd have to deal with unemployment rates skyrocketing.
that's about all i can think of right this minute. because of globalization, we almost have no choice but to continue on this path. i wish the government used a bit more discretion in regards to our money.
4.

Answer 6

in all probability from the 1st press convention while they determine theyre no longer likely to maintain them, the marketplace would be down 10-20% interior 6 months and in all probability 500,000 jobs lost. Oh no yet its conservatives sending jobs distant places. Dont you already know agencies take exhilaration in being taxed larger?

Answer 7

You would see a HUGE boom in the economy. People would suddenly have much more disposable income. They'd go off and spend it on cars, home, clothes, restaurants, trips, or to pay off bills. And the government would get more income in terms of increased sales taxes, manufacturing taxes, tourist dollars, increased employment (because of increased consumer spending) etc.

Answer 8

Well the war in Iraq would certainly have to cease, that or China would just continue to buy up large portions of American debt in order to continue funding the war in Iraq, until finally one days everybody woke up to a large red flag with 5 golden stars.

Answer 9

Liberals would go into shock.

Their very reason to exist would evaporate and they would have to pay for their own therapy.

Our military could finally be able to come home from all foreign bases. We could cut that budget in half and do a better job of homeland security.

SDI could also be installed in full with the military surplus.

All the companies that bailed out of the US to go to foreign countries like Dubai would return.

Job growth would be astronomical as a result.

Tax revenue would triple.

More people could afford to retire early.

Start up investment would triple.

Research and development would skyrocket.

Entry visa applications would at least double.

Purchase of American made goods would go up.

Universities would be over run with applications.

and on and on and on

Answer 10

As one cannot stop the train on a dime, the US would first go into enormous debt.

Then in an attempt balance our military capability would be decimated, our schools would be closed, our highways, roads, streets and bridges would fall into disrepair, cops would come off the streets and criminals would move in. Prisoners would be released early. Seniors who were getting social security would begin to starve and die from the cold. Poor children would begin to starve as they once did in this country. Environmental, safety and standards enforcement would disappear and return our air and water to the choking haze and cesspools of the 1960's.

The economy would eventually collapse into a tiny percentage of very rich and a vast, poor, uneducated, crime-ridden peasantry.