Timothy Geithner continues to speak out about the expiration of the Bush tax credits. Alan Greenspan does, too. But even Ben Bernanke encouraged Congress to continue the cuts to support an already very fragile economy. You see, when you do away with the tax breaks for the “rich” (those making more than $250K a year) and raise capital gains, shove HealthCaid [ObamaCare] down our throats, tout “redistribution of wealth,” strangle the financial Industry with regulations, and much more to come, it will be a disaster. Why?
First of all, if you are making $250K, for instance, you are definitely not rich. Now, let us say you are making $1 million or more a year. It is very likely that you spend a lot of money on products, good and services that the economy requires for sustained recovery. Taking 40% of a person’s income right off the top, followed by state taxes, Social Security and everything else, is flat out wrong. Over 50% of a person’s income is gone right out the window. Then, God forbid, you have anything left over to invest, and you will pay another whopping 20% if you ever make any money. Toward year-end expect a lot of people selling stocks so they don’t get hit with another 5% tax in 2011 and the stock market will be a big problem once again. And whatever you do, don’t die because all your life you were taxed egregiously and they will take half of everything! That alone is massive double and triple taxation.
Frankly, there is no way to tax America out of debt; there is just too much of it. Although even some Democrats are challenging this strategy along with some of our financial leaders, the drum continues to beat. If tax cuts are allowed to expire on the “rich” and maintained for what they say are 95% of Americans, you will have layoffs, hiring freezes and long-term economic woes for sure. It is already the case that the 95% are not buying things at the present tax rate now; and I think we all know those making more money are consuming a large percentage of products and employ a vast majority of the other 95%.
Now, on top of that, ObamaCare is coming and that just means another tax and trillions to support a social welfare system while the others have proven to be failures. The Debt Commission will be putting forth ideas to solve the growing crisis. Again, our leaders think we can tax our way out of this. I assure you, if taxes rise both on individuals and corporations, financial reform takes hold, HealthCaid, stimulus and only God knows what else is lurking around the corner, it will crush the economy.
The simple fact is if you tax people more, they will have less money to spend and invest and, worse, much less money to hire workers and a corporate tax rate that will be #2 in the world. Think about it and don’t forget how much more attractive it’s going to be for big companies to do business overseas.