Taxes are in the news again! The Wall Street Journal reported over the weekend that high taxes are coming and Americans are taking actions to prepare for them.
With incredibly high government spending GENERATING ENORMOUS DEFICITS, it’s true that we can expect to hear calls for large tax increases. Unfortunately, the big government formula of HIGH SPENDING + HIGH BORROWING + HIGH TAXING is a recipe for ECONOMIC DECLINE. Let’s look at the potential job-killing and prosperity-killing taxes being discussed today.
First, of course, is the possiblity that the 2001 and 2003 Bush tax cuts will be allowed to expire. These tax cuts included cuts in individual income taxes, dividends, capital gains, and estate taxes. Second, some have proposed as part of so-called health care “reform” that the 2.9% Medicare payroll tax now be applied to interest, dividends, annuities, royalties and rents. It likely would be applied to capital gains as well. (If this turns out to be the case, then the tax on capital gains will jump from 15% to 22.9%, a staggering 50+% increase in capital gains and an enormous disincentive to new investment, new business creation, and new job creation.)
The third area for tax increases includes new fees and levies on banks and multi-national corporations that will ultimately impact consumers and the prices they pay for products and services. Fourth, with state and local governments seeing decreasing tax revenues from things such as decreased sales taxes, many tax increases at the state and local level will be proposed. New taxes on things ranging from the Internet, to taxes on services and consulting, have also been proposed.
What America needs to boost our economy and increase economic growth is the opposite of today’s BIG GOVERNMENT socialist-leaning policies of HIGH SPENDING + HIGH BORROWING + HIGH TAXING. America needs to bring run away government spending under control. America needs to stop deficit spending. And, America needs to cut taxes that will result in new investments, new businesses, and new job creation.
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Are Job-Killing and Prosperity-Killing Taxes in America's Future?
Taxes are in the news again! The Wall Street Journal reported over the weekend that high taxes are coming and Americans are taking actions to prepare for them.
With incredibly high government spending GENERATING ENORMOUS DEFICITS, it’s true that we can expect to hear calls for large tax increases. Unfortunately, the big government formula of HIGH SPENDING + HIGH BORROWING + HIGH TAXING is a recipe for ECONOMIC DECLINE. Let’s look at the potential job-killing and prosperity-killing taxes being discussed today.
First, of course, is the possiblity that the 2001 and 2003 Bush tax cuts will be allowed to expire. These tax cuts included cuts in individual income taxes, dividends, capital gains, and estate taxes. Second, some have proposed as part of so-called health care “reform” that the 2.9% Medicare payroll tax now be applied to interest, dividends, annuities, royalties and rents. It likely would be applied to capital gains as well. (If this turns out to be the case, then the tax on capital gains will jump from 15% to 22.9%, a staggering 50+% increase in capital gains and an enormous disincentive to new investment, new business creation, and new job creation.)
The third area for tax increases includes new fees and levies on banks and multi-national corporations that will ultimately impact consumers and the prices they pay for products and services. Fourth, with state and local governments seeing decreasing tax revenues from things such as decreased sales taxes, many tax increases at the state and local level will be proposed. New taxes on things ranging from the Internet, to taxes on services and consulting, have also been proposed.
What America needs to boost our economy and increase economic growth is the opposite of today’s BIG GOVERNMENT socialist-leaning policies of HIGH SPENDING + HIGH BORROWING + HIGH TAXING. America needs to bring run away government spending under control. America needs to stop deficit spending. And, America needs to cut taxes that will result in new investments, new businesses, and new job creation.