- Joined
- May 7, 2010
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- 24,399
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- Location
- Upstate SC
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- Male
- Political Leaning
- Independent
Now lets say that Obama magically became an extreme conservative. Lets say he reduced government spending by 75% instantly - immediately balancing the budget and leaving extra funds left over to reduce the federal debt. Lets say that half of all government workers were fired. Lets say that another 10% of private sector jobs were lost due to the reduction in government spending. Lets say that all the unused spendulous money and all the unused TARP money was returned to the Fed and distroyed, thus lowering our federal debt. Lets say that we immediately ended capital gains tax and the death tax and income tax and replaced all of that stuff with a 30% sales or VAT tax.
At this particular time, with this particular recession, what would happen?
From my viewpoint in my particular situation, as a small business owner, this is what would happen to me:
1) I would save about $10k a year in federal income taxes.
2) My customer base would be reduced by the additional unemployment and reduced government spending.
3) The products that I produce would become more expensive to the final consumer (due to the consumption tax) thus I would likely sell fewer products.
4) The products that I consumer would become more expensive due to the consumption tax thus I would likely purchase fewer products.
5) Between lower sales and increased living expenses I would probably not be able to continue paying for my business debt. If I defaulted on my business obligations I would loose my livelyhood, if I lost my livelyhood I would then be forced to default on my personal debt.
6) The banks would suffer significant losses from my defaults.
So step by step, what would happen to you in your particular situation at this particular point in time?
At this particular time, with this particular recession, what would happen?
From my viewpoint in my particular situation, as a small business owner, this is what would happen to me:
1) I would save about $10k a year in federal income taxes.
2) My customer base would be reduced by the additional unemployment and reduced government spending.
3) The products that I produce would become more expensive to the final consumer (due to the consumption tax) thus I would likely sell fewer products.
4) The products that I consumer would become more expensive due to the consumption tax thus I would likely purchase fewer products.
5) Between lower sales and increased living expenses I would probably not be able to continue paying for my business debt. If I defaulted on my business obligations I would loose my livelyhood, if I lost my livelyhood I would then be forced to default on my personal debt.
6) The banks would suffer significant losses from my defaults.
So step by step, what would happen to you in your particular situation at this particular point in time?
