Evergreen Colorado Real Estate

FAST MONEY AND THE ECONOMY

Velocity is the speed at which money or dollars change hands in the economy. If a dollar changes hands 100 times a year then its velocity is said to be 100. The conventional wisdom is that a dollar changes hands 7 times a month or 84 times a year. Here in is the age old controversy over tax revenues and tax deductions.

When a dollar is here in the Colorado economy, and more particularly in the Evergreen, it is circulated 7X each month. When You go to work you receive the dollar and you pay your taxes and earn a profit; then you take the dollar and give it to the local grocery store, and pay sales taxes. There, they make a profit, creating jobs, and pay taxes and salaries; now their employees take the dollar in salary and spend it at the gas station. The gas company creates jobs and makes payroll, generates a profit, pays local taxes, and gives the dollar to the trucker driver who delivers the gas. And so it goes, the dollar creates local jobs, local business profits, local sales taxes, Real Estate taxes, salaries, etc. Every month that dollar makes a profit, creates 7 jobs, pays 7 salaries, pays 7 dollars of sales tax, pays state taxes, and supports the local economy. When we send the dollar to China, and do not receive a dollar back, then all this money velocity happens in China. Also if you send the dollar to Washington, you undermine the local economy, and hurt the local velocity. This is why when the governments raise taxes, and removes the dollar from circulating, revenues go down and the government itself has fewer dollars to spend. This is not a theory but an equation – each time taxes are raised, revenues go down.

It doesn’t take taxes to pay the government’s bills it take revenue or dollars. So when taxes are raised the government’s budget office must shoot for a high tax number, because they know that the percentage of revenues will go down. When Kenney, Regan, and Bush lowered taxes – revenues exploded. The problem is that local, county, state, and federal governments far out spent the increased revenues instead of paying off debt.

Whether you are a liberal, a conservative, young or old you need to understand the basics to personally profit. We can help. Please give us a call. We are MARK ENGLISH REAL ESTATE and we are professional EVERGREEN COLORADO REAL ESTATE BROKERS. We have the experience and know how to protect You and Your financial assets. We are also an EVERGREEN COLORADO CUSTOME HOME BUILDER and can represent you in every transaction from land purchase to complete home. Contact us at 303-674-0148, Email us at markenglishrealestate@msn.com or visit us on the web at www.evergreencoloradoliving.com . We are now offering FREE BUYER INCENTIVES for all our Real Estate and Mortgage customers, so please register on our web site.