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[YZ]

Yes.

Here in Brazil.

First, the Government reduced taxes on new cars, initially for a 3-month 'test' period, then renewed the reduction; then, after injecting money into private banks that said were in need of cash to guarantee liquidity and credit availability to the public and seeing that said banks were instead rising interest rates, hoarding the cash and having record profits, instructed  Banco do Brasil (a sate-owned bank) to offer competitive loan rates for selected uses, including cars and housing.

Taxes were reduced also on building materials and 'white line' goods (fridges, stoves, etc).

Income tax was reduced too; not much but a reduction nonetheless.

The result? our auto industry is hiring, working full 3 shifts, popular models have up to 60 days wait, builders are hiring...

Banco do Brasil stock went down quite a bit after the announcement but recovered when the market saw the volume of new business; iron mining, steel mills, builders stock went up, retail stores too because people have more confidence and started buying more.

My portfolio went up about 30% in 2 weeks.

Ah, and BNDES (National Economic and Social Development Bank) is offering 48-month loans of up to US$200k to small or start-up businesses at rates of 1/3rd of what the private banks charge.

[bblackwood]

That's good to hear, and makes sense. It's why many of us are clamoring not for more government spending, but for cuts to encourage the public to increase spending...

[Skullsessions]

Interesting....the Brazilian Government gets out of the way by:

1:  Lowering taxes to people who buy new cars.

2:  Lowers taxes on building materials

3:  Lowers income tax

4:  Lowers interest rates


And the economy grows.


I wonder....nah...that would never work in the USA.

[mgod]

Skullsessions wrote on Thu, 23 April 2009 09:01

Interesting....the Brazilian Government gets out of the way by: 1:  Lowering taxes to people who buy new cars. 2:  Lowers taxes on building materials 3:  Lowers income tax 4:  Lowers interest rates And the economy grows. I wonder....nah...that would never work in the USA.

Yes. I have to agree with you there. We've had 28 years of conservative economic principles dominating to find out for certain that it wouldn't.

In fact I'd have to say that conservatives have proven inarguably once and for all that the old adage is true - a rising tide sinks all ships.

DS

[rnicklaus]

Skullsessions wrote on Thu, 23 April 2009 09:01

Interesting....the Brazilian Government gets out of the way by: 1:  Lowering taxes to people who buy new cars. 2:  Lowers taxes on building materials 3:  Lowers income tax 4:  Lowers interest rates And the economy grows. I wonder....nah...that would never work in the USA.

In 2001 Bush passed a $1.3 trillion tax cut.  That is still the tax rate today.

[Daniel Farris]

Quote:

1:  Lowering taxes to people who buy new cars. 2:  Lowers taxes on building materials 3:  Lowers income tax 4:  Lowers interest rates And the economy grows. I wonder....nah...that would never work in the USA.

Well, if the Obama administration would just lower taxes on building materials, they'd be batting a thousand.

DF

[Skullsessions]

Yes...and I, for one, have benefitted from these tax rates.

I'm better off now than I was 10 years ago.

But I'd still like to pay fewer taxes.  Any honest person would.

[mgod]

Skullsessions wrote on Thu, 23 April 2009 09:30

Yes...and I, for one, have benefitted from these tax rates. I'm better off now than I was 10 years ago. But I'd still like to pay fewer taxes.  Any honest person would.

And yet, despite your earlier post, our auto industry is in the dumpster. So it must be a tax problem here, right? Or do the Brazilians have some magic formula?

DS

[Jay Kadis]

Taxes are not the problem.  Spending more than you make is the problem.  Borrowing money to gamble in the stock market or in real estate is the problem.  If everyone lived within their means we would not be in this mess.

I'm an honest person and I am willing to pay more in taxes if it will make this a better society for everyone.  And I'm willing to gamble that it will.

[Skullsessions]

Daniel Farris wrote on Thu, 23 April 2009 11:24

Quote: 1:  Lowering taxes to people who buy new cars. 2:  Lowers taxes on building materials 3:  Lowers income tax 4:  Lowers interest rates And the economy grows. I wonder....nah...that would never work in the USA. Well, if the Obama administration would just lower taxes on building materials, they'd be batting a thousand. DF

We can lower tax rates as much as we want...but if the Fed keeps spending like drunken sailors, we'll be much, much worse off than we are now.

Ten years ago I had maxed out credit cards.  I didn't keep getting more credit.

I stopped spending money and did with what I had until I got back on track.

[mgod]

rnicklaus wrote on Thu, 23 April 2009 09:11

Skullsessions wrote on Thu, 23 April 2009 09:01 Interesting....the Brazilian Government gets out of the way by: 1:  Lowering taxes to people who buy new cars. 2:  Lowers taxes on building materials 3:  Lowers income tax 4:  Lowers interest rates And the economy grows. I wonder....nah...that would never work in the USA. In 2001 Bush passed a $1.3 trillion tax cut.  That is still the tax rate today.

Oh stop it, Randy - using fact is so uncalled for. Where's the heart? The gut feel for resentment of government of the people?

DS

[Daniel Farris]

Skullsessions wrote on Thu, 23 April 2009 09:35

We can lower tax rates as much as we want...but if the Fed keeps spending like drunken sailors, we'll be much, much worse off than we are now.

Wait a second. YOU laid out the criteria. I was simply pointing out that the administration had done three of the four things YOU mentioned.

If you don't think lowering taxes will work, why are you on the internet suggesting we should lower taxes?

DF

[Skullsessions]

mgod wrote on Thu, 23 April 2009 11:34

Skullsessions wrote on Thu, 23 April 2009 09:30 Yes...and I, for one, have benefitted from these tax rates. I'm better off now than I was 10 years ago. But I'd still like to pay fewer taxes.  Any honest person would. And yet, despite your earlier post, our auto industry is in the dumpster. So it must be a tax problem here, right? Or do the Brazilians have some magic formula? DS

I don't work in the auto industry.

But I do work for a company thay pays taxes.  It's easy.  The fewer taxes they pay, the more I can provide for me and mine.

I don't owe YOU or anyone else any part of that.

Do I?

[Skullsessions]

Daniel Farris wrote on Thu, 23 April 2009 11:40

Skullsessions wrote on Thu, 23 April 2009 09:35 We can lower tax rates as much as we want...but if the Fed keeps spending like drunken sailors, we'll be much, much worse off than we are now. Wait a second. YOU laid out the criteria. I was simply pointing out that the administration had done three of the four things YOU mentioned. If you don't think lowering taxes will work, why are you on the internet suggesting we should lower taxes? DF

As usual.   You've missed the point.

[rnicklaus]

Skullsessions wrote on Thu, 23 April 2009 09:35

We can lower tax rates as much as we want...but if the Fed keeps spending like drunken sailors, we'll be much, much worse off than we are now. Ten years ago I had maxed out credit cards.  I didn't keep getting more credit. I stopped spending money and did with what I had until I got back on track.

The reality is that taxes were cut, spending went through the roof and over the last 8 years, the national debt was doubled to $11 trillion.  

It is VERY scary to look at the debt the nation had accrued since inception and see that Bush doubled it in 8 short years.

The major stock indexes were down 20% from Jan 20th 2001 to Jan 19th 2009.