Tax Rate Control

I mentioned this on your Fed 13 post,but will re-iterate here. The reason that'll never fly is Congress' (usually led by the libs) penchant for wanting to use the tax codes to increase their power,promote their ideas,and try to control more of the populace,along with the ensuing economic activity of same. They say it is to "make things fairer". Bullsqueeze. Don't buy it. The term "social engineering" come to mind?

haha, social engineering. right on.

I didn't think congress would accept it, but what do you think of the idea?

The idea has merit,I only see two minor problems. 1) The aforementioned inability of the Congress,especially one controlled by liberals,to acquiesce ANY of their power,and 2)What happens if you get a politicized Fed,like we have now? Think Summers running the Fed,or any other Obamaite.Not too sure you'd want that kind of power given to those who could really cause problems. IF the politics could be taken out of the equation,then it most likely would work. Interesting concept,I'll grant you that.

True about a politically activated Fed. I do think that this wouldn't be too much of a problem. Since congress votes on a range the fed can change it to, the fed cannot do very much. If liberals got their man in power with the Fed, he would put it to the highest rate the law would allow, but that is basically the same thing as liberals in congress voting in the higher rate anyways.

In terms of changing the tax rate for politics I don't think it would really change all that much, but if a tax break was needed quickly because of, say, a housing crisis, the Fed could cut 5% off really quickly and we might have been able to avoid this collapse.

So I don't think long term tax rates would change much because congress could just vote on what they wanted if the law wasn't in place, but in very short term effects, it may allow the government to act more quickly, within limits.

I do fear that a range would just end up with the top of the range being the tax rate though. *sigh*

Certain thoughts come to mind.
*Constitutionality: Congress invested with power to raise taxes, not a para-governmental institution - The Fed.
*Is the Fed even Constitutional?
*Agree with clyde's assessment of "politicization" of the process and institutions.
(eg. Fannie/Freddie)
*Could be a moot point anyway. We may be headed toward 50%+ of population paying no taxes at all. After that, "who cares what the tax rate is".

good point on the constitutionality. I would have to take a look at it again to see if it could be fit under where the interest rates go. Since congress would in essence still be setting the rates, it could be all good there.

And the constitutionality of the Fed is a whole other conversation in itself lol.

Great questions to it. And yes, once/if we hit the 50% mark, we are screwed and we might as well just have the revolution now. lol

CK, I see problems at every level. Gosh, where to begin.

Constitution? Basic economics? Who the players are and why neither of the above matters? Could write a book on each, but it's neither the time nor the place.

We'll be France II within four years or (as we say here in the South) either Venezuela, one.

Basic economics? I could see this helping the economy if done by the right people. Not saying it would be, but if.

Being able to help an ailing economy by lowing the tax rates along with the interest rates could go a long way to keeping us afloat I think.

But yes, it is a moot point when considering 40% don't really pay taxes lol.