THREAD IS CLOSED!!! Ask Rande 6000+ USE NEW THREAD: Taxes

» SteveT - Taxes

I am not in favor of the Government spending the surplus. I am surprised, it looks like we are going to have surpluses. How would this plan work? If we get a surplus of $1 Billion next year, use the Billion to pay down the Debt. Next year what would the Interest be a 1 Billion, about 60 Million give or take. Use the 60 Million for tax breaks next year. In the following year use the 60 Million for more tax breaks + the Interest payments for year 2 that we would have had to pay had we not paid down debt. Don’t know what the number would be but it presumably would be another 60 Million or maybe a little less. And so on and so on… Just maybe we can have it both ways. It seems to me after several good years we could end up with a smaller Debt and substantial tax cuts. I am thinking if we could get something along these lines started the tax cuts could compound in our favor. I would not be surprised if I am missing something here but it would be interesting to here someone more learned than I tear into this concept.

-- posted by SteveT