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Strategies & Market Trends : The Epic American Credit and Bond Bubble Laboratory -- Ignore unavailable to you. Want to Upgrade?

To: Steve Lokness who wrote (8676)	2/25/2004 11:58:08 PM
From: who cares?	Respond to of 110194

I've often wondered if the tax receipts being down isn't because people have huge tax losses to carry forward whereas under the last years of the bubble, Clinton got a huge windfall from everyone having capital gains. Everyone says the trillions lost since the bubble went to money heaven, but a lot of it went to tax loss carryforward hell for the govt. Tax cuts are a good thing usually. But, it wouldn't matter if you cut taxes to 1%, if it costs $10 to make a widget here, and $2 to make it in China and ship it over here, it's not going to matter, thus no jobs coming back, and people are taking what money they have and putting it toward their housing downpayment, and even if they sell the house and make some moulah they get a big exemption from the govt. on the gains. So the low interest rates are also hurting tax revenues IMO. Lose a few trillion in the market, make it back in home values, all is equal I think was the way the New York Times or WSJ wrote it up a few weeks back, except the Govt. doesn't get as big a hunk of the taxes out of the housing.