Silicon Investor (SI) -- The First Internet Community

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

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

To: Jim McMannis who wrote (65683)	7/9/2006 5:13:29 PM
From: Elroy Jetson	Respond to of 110194

The recent rise in tax revenues from corporations and wealthy people is due to the rise in interest rates. I know I'm paying more Estimated Taxes now at 5% than when interest rates were 1%. On the other hand, had interest rates not declined so low, the government could not have reduced their interest expense on the newly created Federal Debt. So based on this one factor, the Federal Deficit would have been larger if interest rates had not been taken so low. But as you point out, eliminating the many, many subsidies for real estate, farming and other sectors - let alone the purposeless war in Iraq - would quickly eliminate the Federal Debt. The recent mammoth expansion in Federal subsidies to the Pharma industry, which Bush recently created with the Medicare prescription drug program, designed to subsidize the Pharma industry while the medical costs for seniors remained constant, is a giant move in the wrong direction. .