Where is the US economy headed?

Here is our president discussing social security, among other things.

http://www.youtube.com/watch?v=LaY8wzwxWTc&feature=related

Summarize it in a word for us, will you? Appreciate it, and thanks.

stupid

Moronic!

Figured.

Since so many of you blame Bush and his tax cuts for the economy, I thought you might find this interesting...

Despite the hoopla about tax cuts, not much has changed about what we pay

http://www.boston.com/business/personalfinance/articles/2008/05/10/despite_the_hoopla_about_tax_cuts_not_much_has_changed_about_what_we_pay/



So apparently all Bush did was cut income taxes to the pre Clinton level.

If you read the rest of the piece, you will see that the Bush tax cuts really didnt have the major impact on the economy that some of you are trying to suggest, he just took us back to the pre Clinton years.

Govt spending is the culprit, not the tax cuts.

MM, the problem with your post is that, in the Bush years, there was a much bigger concentration of income and wealth in the top two percent in income. They are paying less than they should under our ability-to-pay tax system. Buffet commented that he pays at a lower rate than does his secretary.

Bush's tax cuts have had a huge impact on our economy, and on our economic future. The tax cuts are costing trillions over ten years, all of which gets tacked onto our national debt. This is the primary reason that the dollar is sinking like a rock. It seems that we will become Argentina.

Lets examine Buffets statement...

Buffett says he earned $46 million in 2006, with a tax rate of 17.7 percent -- all, says Buffet, without attempting to avoid paying higher taxes. But his income clearly places him in the highest federal income tax bracket -- 35 percent -- but the same "non-avoidance" tax rules allow ample deductions and credits. Surely a man like Buffet can claim buckets-full, to say nothing of possible business losses and capital gains inherent in his line of work. So he probably reached the 17.7 percent rate without any monkey business. Fair enough. Whip out your calculator. First, Buffett, on his $46 million a year, paid -- at his 17.7 percent rate -- over $8 million in taxes.

Now let's deal with his secretary, whom he claims pays his or her taxes at a 30 percent rate. Buffett, in his speech, provided no details about the secretary. But even with minimal deductions, the highest possible federal tax bracket for a single person earning $60,000 a year is 25 percent. We don't know whether Buffett's secretary is married, a homeowner or renter, or has children.

Let's suppose Buffett's secretary is a single person, a renter, no kids, and makes no IRA contribution (or any other gross income adjustments) and claims the standard deductions. This scenario places the secretary in the highest possible income tax bracket. But after the standard deduction ($5,150) and one personal exemption ($3,300), the secretary's taxable income becomes $51,550 -- the 25 percent tax bracket. This means the secretary pays $9,439 in taxes -- or 15.7 percent of the $60,000 annual income. Assuming the secretary lives in Nebraska (where Buffett is headquartered), with its highest income tax bracket at 6.84 percent, the secretary pays $2,663 to the state, or another 4.4 percent of the $60,000. Altogether, this gives the secretary a total tax rate of 20.1 percent.

Throw in one kid under 17 years of age, and a $4,000 contribution to an IRA, and this single parent secretary -- still renting and claiming the standard deduction -- now has a taxable income of $41,850. With one child tax credit, secretary pays $4,814 in federal income taxes, just 8 percent of the $60,000-per-year income. Single-parent secretary also pays $2,076 in income taxes to Nebraska, for a total of 11.5 percent of the $60,000 per year annual income.

Now suppose we're talking about a married secretary, with a stay-at-home spouse. They file jointly, pay a home mortgage and have two kids under the age of 17. They place $4,000 in an IRA and itemize $15,000 in deductions. Here the tax picture changes dramatically. Taxable income drops to $27,800 -- the 15 percent tax bracket. With child tax credits, secretary now pays $1,419 in federal taxes, or 2.4 percent of $60,000. Add in another 2 percent for $1,218 in state taxes, and secretary pays a grand total, state and federal, of 4.4 percent on the $60,000-a-year salary.

MM, I think there is a good chance that her income is well into six figures.

Some here don't like good news or positive predictions, and perish the thought if the economy would be picking up before November!

"Top UCLA Economist:
No Recession, Time to Buy!
Leading economist who warned about the housing bubble three years ago tells why a recession is not likely this year and why now may be a good time to buy stocks."

http://w3.newsmax.com/fir/fir_54.cfm?promo_code=2A89-1

Okie, you shouldn't take financial advice from an advertisement. In some, a doctor will tell you that you will rid yourself of belly fat with his pill.

Well, I do tend to think the housing thing might be beginning to turn the corner, and I don't think the economic outlook is all that bad.

I haven't seen Rosie Scenario lately, but hope you are right. I see little more than growing problems with no obvious solutions. I hope we don't become Argentina.

The subprime mortgage problem is long-term; it ain't gonn disappear any time soon. Give it another 18-plus months before we see the bottom of the problem. However, those companies being managed properly can still show growing profits; the cheaper dollar makes our products and services more competitive in the world marketplace. Our debt to China and Japan decreases, and what we've been buying from these two countries have incrased the discount at which we purchased those goods.

We must watch out for inflation, because there's too many dollars floating around in this world, and our government keep printing more money with nothing to back it up.

I think I disagree with a bit of your logic, ci. I will read it again.

Meanwhile, oil hits $133/barrel today, Wednesday.

To what products are you referring? Ships and planes arrive full of goods and depart empty. This will only get worse. The dollar seems to be doomed.

I just got my economic stimulous check from the government. To make sure it would serve its purpose, I gave the money to Obama.

Good evening to folks on this spirted thread.
I was in the grocery store I use. A national chain but I won't mention the name for fear of being accused of shilling for them. Here is the deal that they are offering.
Buy a gift card good for use in their stores in the amount of $300, $600, $900 or $1200. They will issue the card for 10% more. So $300 becomes $330. I get a 2% rebate from my credit card company for all purchases and I get a 5% discount at the store for being an old fart.
Add it up and I get about a 16% discount on groceries.
There is no expiration date on the gift card but if you lose it you are plumb out of luck.
I don't know what the bottom line profit margins are for grocery store chains. It used to be in the couple of % range. But they have diversified into non-food items, so it is probably better. But they are getting squeezed by Walmart etc.
They need, I guess, to develop a loyal customer base who won't be looking for the lowest price on Chicken Noodle soup.

But. But, I am uncomfortable because this program is being targeted to people like me who have $300, $600, $900 or $1200 in a bank account earning 1% interest. No relief to the folks who have no savings.

I think it is a gimmick to generate more cash flow sooner, somewhat like the Post Office selling forever stamps or whatever they called them. Personally, I don't think it is a good marketing strategy, long term, just like I think the Post Office was wrong to do it. Either your product flies on its merit, or it doesn't, plain and simple, and gimmicks will eventually fail if thats all you have to offer.

When house prices went up, I don't remember you ever admitting there was a housing bubble.

When house prices went down, I don't remember you ever admitting the market was tanking.

So what do you mean when you say "the housing thing might be beginning to turn the corner"? Maybe that the market is finally turning bad?